The Pensions Regulator (TPR) has launched an information campaign to crackdown on incidences of false and misleading messages from companies that claim to be able to release pension cash as a loan or lump sum before age 55.

The warnings are detailed in a range of inserts, leaflets and an action pack aimed at scheme members and pension providers to raise awareness of the increasing incidences of pension liberation fraud.

Under the taglines ‘predators stalk your pension’ and ‘don’t let your pension become prey’, the materials warn that perpetrators and are sending spam text messages, making cold calls or publishing website promotions to encourage savers to transfer their existing pension in return for a portion of the savings in cash before the age of 55.

They warn that such unauthorised payment could result in tax charges of over half the value of member’s savings; and that resulting fees – as high as over 20 per cent – may not be recoverable.

Savers are being asked to look out for the warning signs of fraud, including being approached out of the blue over the phone or via text message; unregulated and pushy advisers who claim to be able to help you access your pension before age 55; companies that offer a ‘loan’, ‘saving advance’ or ‘cashback’ from your pension; any reference to ‘loopholes’, overseas investments, creative or new investment techniques.

The regulator has teamed up with HM Revenue and Customs, the Financial Services Authority, the Serious Fraud Office, the National Fraud Intelligence Bureau, the Serious Organised Crime Agency, Action Fraud and the Pensions Advisory Service to deliver the campaign.

Pensions minister Steve Webb said: “Money in a pension is there for retirement and should not be released before at least the age of 55. The Government is investigating a number of schemes where firms appear to be preying on people when times are tight, and I am working closely with The Pensions Regulator to ensure rules are not being broken.”

TPR chief executive Bill Galvin added: “The pensions industry needs to do what it can to protect members from these offers. There can be a huge sting in the tail for those that are tempted by the sales patter.

“Before considering any transfer requests, we want trustees, providers and administrators to consider whether members’ savings are being transferred into a liberation scheme.

“Providers who don’t carry out due diligence before processing a transfer may be placing members at high risk - and also exposing themselves to significant reputational damage.”

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