Criminals are pitching a fake “safe haven” for pension savings pots as they try to exploit changes to inheritance tax rules, with scams already circulating by email, phone and message. The warning comes as people with defined contribution pensions are set to see any money left after death pulled into the inheritance tax net from April next year.
The risk is not the same for everyone. The basic tax-free threshold for an estate remains £325,000, which means the changes will matter most for people with larger pension pots and estates close to or above that level. Standard Life has warned that scams built around the rule change are likely to become more common before April 2027, when the new treatment of pensions is expected to be fully embedded in people’s planning.
Donna Walsh said the confusion around the new rules is exactly what scammers are trying to use. “With these changes, people become uncertain and a little bit confused around what they can do, what will and will not happen. And that’s exactly the type of conditions that scammers are set to exploit,” she said. The warning matters now because the first round of rule changes is close enough for criminals to sell urgency, but far enough away for savers to think they still have time to decide.
The typical pitch starts with an unexpected call, email or message. Scammers may offer a free review of a pension, or claim access to an overseas scheme or investment promising high returns. The Pensions Regulator says common scam phrases include “pension liberation”, “loan”, “loophole”, “savings advance”, “one-off investment” and “cashback”. The language is meant to make the offer sound legitimate while hiding the real purpose: getting money transferred out of a regulated pension.
That pressure often hardens once a person shows interest. Scammers frequently tell victims they only have a short window to accept, then coach them on how to answer questions from the pension provider once a transfer is under way. Cold calling about pensions is illegal, but that has not stopped the tactic from being used. The Financial Conduct Authority says people can use its online tool to check whether a company is authorised, and MoneyHelper can point savers toward a regulated financial adviser.
Mike Ambery of Standard Life said people with larger pots are likely to be reassessing how to pass on wealth as pensions may face inheritance tax and then income tax for beneficiaries. “Those with larger pots may be thinking about how best to pass on wealth, particularly where pensions could face inheritance tax and then income tax for beneficiaries,” he said. “For some, that might involve longer-term planning or decisions about gifting, but there’s rarely a one-size-fits-all answer. What’s important is not to be rushed into action – especially if someone is pushing a ‘quick fix’, or playing on fear.”
The tension for savers is clear: the rules are changing, but the scammers are moving faster than the system that is supposed to protect them. People weighing up pension transfers now face a narrow test — whether an offer is a legitimate piece of financial planning or a trap dressed up as one. The safe course is to pause, verify who is calling, and check advice before moving a single pound.
