Employers worried about pension scams

Employers are concerned that their workers will be exposed to new and sophisticated scams when the new pensions freedoms come into force in April, according to new research by Jelf Employee Benefits.

The research, carried out in February amongst over 150 employers, found 84 per cent of employers believe their staff are not aware of potential pension scams. It also found that only 3 per cent of the employers questioned believe their employees are aware of possible pension scams.

But more than half of employers – 55 per cent – say they are prepared to take action to alert employees to these risks, with 19 per cent of respondents intend to provide workers with education sessions, and a further 35 per cent set to write to employees.  Only 15 per cent of employers intend to take no action at all.

Jelf Employee Benefits head of benefits strategy Steve Herbert says: “These findings suggest that the vast majority of savers may be unaware of the growing risks to their savings associated with these new freedoms.  Even at this late stage the new pension rules remain something of a work in progress – and that provides a shroud of confusion which will be meat and drink to the slick and professional criminal organisations whose mission is to separate savers from some or all of their retirement savings.

“I really hope that the legislators and regulators take notice of these findings, and take urgent action to increase the profile and awareness of this very real risk in the coming weeks.”