You can’t usually take your retirement savings before you’re 55. But these scams – sometimes called ‘pension liberation’ schemes - offer to give you access to your retirement savings earlier than the usual minimum age of 55.
These ‘schemes’ offer loans, cash payments and incentives to transfer your retirement savings. They often take high charges or fees, invest your money in risky investments and don’t warn you of the tax consequences.
Releasing some of your company or personal pension early can seem like an easy way to clear debt, and raising some much needed cash can seem an attractive option.
However, such plans can easily backfire.
Fees and tax can add up to a hefty 85% of the amount released. And don’t expect to be made aware of this before it’s too late to do anything about it.