You should challenge your adviser

The Financial Conduct Authority is telling investors to challenge their advisers over advice on pension liberation schemes.

In a warning to investors, the FCA explains it is essential to seek independent financial advice before proceeding with schemes to access money from pensions earlier than age 55.

They are currently working with The Pensions Regulator, Serious Organised Crime Agency and other organisations to combat these pension liberation scams which often result in victims losing much of their pension fund through charges and taxes.

Anyone who approaches you with an offer to access your pension fund early should be treated with a great deal of caution.

While there should be no authorised and regulated financial advisers recommending these pension liberation schemes, it is always a possibility.

Where an independent financial adviser does suggest such a scheme, always challenge their advice.

The FCA said:

“If an adviser authorised by us promotes an early pension release scheme ask them to explain the full consequences and risks involved, and your other options.”

This is good, common sense in respect of all advice given by financial advisers, not only to help prevent becoming a victim of pension liberation scams.

Always challenge what your financial adviser is saying; ask plenty of questions to make sure you understand what is being recommended, before you proceed.

If you have been approached by an individual or firm promoting a pension liberation scheme, you should report it to Action Fraud on 0300 123 2040.

Alternatively, do speak to us if you or someone you know needs a second opinion before exposing their pension assets to so much risk of loss.