The Government should consider radical new measures to build on the pensions cold calling ban confirmed in the Autumn statement today, including:
allowing savers in financial hardship to access their pensions tax-free cash early
a list of permitted investments for SIPPs
Tom Selby, senior analyst at AJ Bell, comments:
“The pensions cold-calling ban is a great intervention in the battle against scammers and we are looking forward to seeing the detail of the consultation before Christmas. However, more can be done and the cold calling ban must be viewed as the start of a long term drive to defeat pension fraudsters and not the final solution.
“Policymakers must consider radical solutions to tackle the growing threat of pensions fraud. Savers could, for example, be given early access to their tax-free cash where they can demonstrate financial hardship. People are often lured in by scammers when they are in financial distress, so this safety valve could provide a valuable extra option for those who are struggling to make ends meet.
“A list of permitted investments for Self-invested Personal Pensions (SIPPs) could also be reintroduced. This would make it harder for pensions fraudsters to succeed with scams that are based around ‘too good to be true’ investments that are not on the list.
“Many of the victims of scams are elderly and vulnerable, and it is incumbent on Government, regulators and the wider industry to ensure these people are protected.”