The DWP is responsible for a number of issues, including overseeing pensions, and it is committed to keeping Britons safe. As a result, the Government department has set out its final rules which are designed to add a layer of protection for people who are transferring their pension. Pension schemes will now be required to intervene when there is reason to believe someone is moving their retirement pot to a scheme which is linked to a scam.
If a transfer “red flag” has been raised, the provider will have the power to block the transfer in its entirety.
Red flags involve, for example, where the member has been pressured or indicated they felt pressured to make a transfer.
However, if a so-called “amber flag” is raised, the scheme member will be required to take official scams guidance offered by PensionWise before continuing with the process.
An amber flag, for example, is where there are high risk investments in the scheme a person intends to transfer to.
“However there are relatively few scams around transfers before age 55, as most people know there are only very limited circumstances where you can access your money legally before age 55.
“Instead scammers largely wait until people can legally access their money from age 55 onwards and these measures do nothing to prevent those scams.
“While more safeguards are helpful, people want, and expect, pension schemes and providers…