Pension Scams: Red Flags for UK Expats and How to Check a Transfer

Pension scams cost victims their life savings, and people who live abroad are particularly exposed. Your pension is out of sight, the rules are unfamiliar, and the people who contact you may sound professional. This guide explains the red flags UK expats should watch for, how to check an adviser or an overseas scheme before you transfer a UK pension abroad, and what to do if you think you have been targeted.

This guide is general information, not personal advice.

Why expats are targeted

Scammers go where the pensions are large and the checks are weak. Expats often have sizeable UK pensions built up over a career. They may be far from the UK regulators, uncertain how UK rules apply from overseas, and used to dealing with advisers by email or messaging apps. Scammers also exploit the fact that overseas pension schemes are a genuine option, so a pitch involving a QROPS can sound plausible.

Common types of pension scam

• The “free pension review”. An unsolicited call, email or social media message offers a free review of your UK pensions. Genuine pension advice is not free, and a free review is often the start of a sales pitch.
• Early access. You are offered cash from your pension before age 55 (the minimum age is due to rise to 57 in April 2028). This is usually described as a “loan”, “cashback” or “loophole”. It can trigger heavy tax charges and leave you with nothing.
• High-risk overseas investments. Your pension is moved into property abroad, forestry, hotels, renewable energy bonds or similar investments that are hard to value and hard to sell, with promises of high or guaranteed returns.
• Unregulated overseas schemes. You are told to move your pension to a scheme that is not a genuine QROPS, or one that claims to be and is not. If a scheme is not qualifying, the transfer can be treated as an unauthorised payment and taxed at 40% or more.
• Cloned or impersonated firms. A scammer copies the name and details of a genuine regulated firm.
• Pressure through friends or social media. A recommendation from someone you know, or from a stranger in an expat group, is not a check.

Red flags to watch for

Treat any of these as a reason to stop and check.

• Unsolicited contact about your pension, by phone, text, email, post or social media
• Cold calling about pensions, which is illegal in the UK
• A “free” pension review
• Guaranteed or unusually high returns
• Offers to release cash before age 55
• Time-limited deals, or pressure to sign quickly
• Jargon such as “loophole”, “cashback” or “pension liberation”
• High-risk, hard-to-verify investments, particularly overseas
• Complex structures where it is unclear where your money goes
• Several firms, often overseas, each taking fees from your pension
• An adviser who will not give you their name, regulator or written details

If you are told that a scheme is “HMRC approved” or “recognised”, ask for the evidence and check it yourself.

What your UK pension provider may do

UK pension schemes are expected to look out for signs of a scam when you ask to transfer. Many warning signs are classed as red or amber flags, and a scheme can refuse to process a transfer, or pause it to ask questions, if the flags are serious. If your provider asks you questions or asks for evidence, that is a good sign that the system is working, not an obstacle to get round.

Transfers to overseas schemes can attract extra scrutiny, because overseas investments and unregulated structures are common in scams.

How to check before you transfer

Do these checks yourself. Do not rely on information supplied by the person who contacted you.

1. Check the adviser is authorised. Use the Financial Conduct Authority’s Financial Services Register or Firm Checker. Search for the firm on the register by name and reference number, and use the contact details on the register, not the ones the adviser gives you. Do not take advice from a company that contacted you out of the blue.
2. Check the FCA Warning List. It lists firms and individuals operating without authorisation, including clones.
3. Check the scheme is a QROPS. HMRC publishes a list of overseas schemes that have notified it that they meet the QROPS conditions. A scheme missing from the list is not a qualifying scheme. Ask the adviser to show you the scheme on the list, then check it yourself.
4. Check where the money will be invested. Ask for a written list of every investment, who holds them, and how you can sell them. Be wary of anything you cannot value.
5. Add up every fee. Ask for all charges in writing, including adviser, scheme, investment, and any that go to introducers.
6. Ask about regulation where you live. An adviser in your country of residence should hold the right local authorisation, and a UK transfer may also need UK-regulated advice. Ask them to explain exactly which regulator oversees them, and check it.
7. Take your time. A genuine adviser will not mind you taking days or weeks to decide.
8. Get a second opinion. Ask another regulated adviser, or a UK pension guidance service, to review any proposal. Our UK pension review is one way to see exactly what you have before anyone offers to move it.

Why a QROPS is not automatically a scam, and not automatically safe

A QROPS is a legitimate type of scheme, and many are genuine. But the label QROPS does not make a scheme safe, and some scams use the term to sound credible. The overseas transfer charge is also a trap for the unwary: if a scheme is wrongly described as qualifying, or an exclusion is claimed incorrectly, a transfer can end up taxed. Read our guide to the overseas transfer charge so you know what a genuine adviser should be telling you, and see QROPS for the basics.

What if you have already been targeted?

Act quickly.

• Stop all contact with the person and do not send any more money or documents.
• Contact your pension provider immediately, especially if a transfer has been requested but not completed. It may be able to stop it.
• Report it. In the UK, report suspected fraud to Report Fraud (formerly Action Fraud) in England, Wales and Northern Ireland, or to Police Scotland. Report unauthorised advice and concerning transfer requests to the Financial Conduct Authority, and report breaches of pension law to The Pensions Regulator. If you were cold called, you can also report this to the Information Commissioner’s Office.
• Keep records of all calls, messages, emails and documents.
• Take advice from a regulated adviser or a pensions guidance service about what, if anything, can be recovered.

Do not feel embarrassed. Scammers are skilled, and anyone can be caught out. If you are tracing an old pension, read our guide on how to trace a lost pension without falling for tracing scams.

Protecting yourself: a short checklist

• Ignore unsolicited contact about your pension.
• Never act under time pressure.
• Check the adviser and firm yourself on the FCA register.
• Check the scheme on HMRC’s list.
• Get everything in writing, including all fees.
• Ask your UK provider what it checks before releasing a transfer.
• Get a second opinion before you sign.

Planning to take money out? See taking a pension lump sum abroad for the tax rules. For the wider picture, see our guide toexpat pensions.

Frequently asked questions

Are pension scams common among expats?

Yes. Expats are an attractive target because they often have large UK pensions and are far from UK regulators. Take extra care with any unsolicited approach.

Is cold calling about pensions legal?

In the UK, pension cold calling is banned. A cold call about your pension is a warning sign in itself.

How do I check that an adviser is genuine?

Look them up on the Financial Conduct Authority register and use the contact details shown there. Also check the Warning List for clone firms.

Can my UK pension provider stop a scam transfer?

Providers are expected to look for scam warning signs and can pause or refuse a transfer if serious red flags are present. Answer their questions honestly and do not try to work around the process.

What should I do if I think I have been scammed?

Stop all contact, tell your pension provider, report it to Report Fraud and the FCA, keep records and get advice.

This article is for information only and is not financial or legal advice. Take regulated advice before transferring a pension.