Around 27 per cent of Brits, equal to 14 million people, are worried that they may fall victim to a pension scam due to their increasing sophistication, with 47 per cent of savers, around 25 million people, stating that pension scams are hard to spot, according to a survey from LV=.

The LV= Wealth and Wellbeing Monitor also found that 14 per cent of UK adults, around 7.6 million people, have been contacted by someone other than their pension provider encouraging them to transfer or release money from their pension.

Furthermore, 8 per cent, around 4.4 million people, said that they know someone who has fallen victim to a pension scam, although less than a third (32 per cent) of savers knew how to report a scam.

These concerns were even more prominent amongst those with mass affluence, as 31 per cent of those with assets of between £100,000 and £500,000 excluding property were concerned about pension scams, and 24 per cent have been targeted by pension scammers.

In addition to this, 47 per cent of savers, around 25 million people, believed that pension scams were hard to spot, with over half (55 per cent) of mass affluent adults viewing scams as hard to spot and 41 per cent wanting to learn more about preventing them.

More broadly, the survey found that 38 per cent, around 20 million people, wanted to know more about how to identify and spot potential scams.

LV= managing director of savings and retirement, Clive Bolton, highlighted the findings as evidence of just how fearful savers are of pension scams, warning that it can be easy to fall victim to a scam.

"One of the best defences is to understand how and where fraud can occur," he added however.

“People should be wary of unexpected contact that comes out of the blue such as cold calls, letters or emails, and they should be sceptical of unusually high or unrealistic returns. If an offer looks too good to be true, it probably is.

“They should also be wary they come under pressure to quickly withdraw money from a pension or complete a transfer.

“The best option for people considering transferring a pension or withdrawing money as they retire is to speak to a qualified financial adviser. Consulting a qualified financial adviser is one of the best ways to secure the retirement you want because they will be able to find the most suitable investments for a client.”

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