The Government has stripped savers of their ability to have a final say on pension transfers in a bid to combat the rising tide of scams.

Pension companies have been given powers to block customers from moving their money when they suspect they may be handing over their life savings to criminals. 

This comes amid a growing fraud epidemic, with almost eight million people in Britain targeted by tricksters trying to fleece them out of their nest eggs, a survey by insurer LV previously found. The number of pension transfers showing signs of a potential scam has risen 80pc in the past five years, according to XPS Pensions, a consultancy. 

Pension providers will be able to deny a transfer where “red flags” point to a suspected scam, in a move that will restrict savers’ statutory right to switch their pension from one company to another. 

Currently, a pension company could open itself up to legal action if it denies a transfer request outright, however they will have more protection when the new rules are introduced on November 30. The clampdown has been widely supported by the pensions industry, which has called for tighter rules to prevent pension scams. 

Guy Opperman, the pensions minister, said: “We are tackling the scourge of pension scams in practical terms to safeguard pensioners’ hard-earned savings. These measures will provide better protection for savers.”

Since 2015 savers have had more flexibility to invest their pensions thanks to the “pension…

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