Pension statement season could leave over 10m Brits 'at risk of mail fraud'

Around 10.6 million pension savers could be at risk of their sensitive financial information ending up in the hands of fraudsters under plans for an annual benefit statement season, research from PensionBee has suggested.

Previous research from the provider found that a third of pension savers (33 per cent) believe that it does not matter whether they inform their pension provider(s) of a change of address.

The findings initially prompted concern over the number of lost pensions, although in light of new plans from the government for a statement season, the provider has warned that there is a “much bigger concern” around mail fraud.

The statement season proposals aim to help maximise the impact of simpler statements and stimulate greater debate amongst savers, and were previously consulted on earlier

PensionBee, however, warned that scammers around the country could be poised to collect the many millions of incorrectly delivered pension statements, emphasising that this would be “catastrophic” for savers and their hard-earned savings.

PensionBee CEO, Romi Savova, commented: “While the Pensions Minister’s plans are well intentioned, little thought has been given to the grave risks this could pose to savers.

“Statement season or no statement season, the vast majority of pension providers still rely on post to communicate with their customers so it’s imperative that savers always ensure their contact details are up to date when they move house.

“Losing track of hard-earned savings can have a significant impact in later life, and could see millions of people working for far longer than they would otherwise need to, before they can afford to comfortably retire.”

Commenting in response to the concerns, a Department for Work and Pensions (DWP) spokesperson said: “Individuals already receive annual pension statements.

"Statement season is looking at maximising the impact of these statements, so that savers would receive their annual benefit statements from all their pots at the same time of year- in a ‘season’.

“We are working closely with industry to deal with any operational and transitional challenges. Let’s not forget this change is all about helping savers understand their pension pots in a simple way.”

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