Beware of 'Pension's Liberation'
Companies are singling out savers like you and claiming that they can help you cash in your pension early. If you agree to this you could face a tax bill of more than half your pension savings. Don't let your pension become prey.
'Pension Loans' or cash incentives are being used alongside misleading information to entice savers to cash in their pensions. This activity is known as 'pension liberation fraud' and it's on the increase in the UK. In rare cases - such as terminal illness - it is possible to access funds before age 55 from your current pension scheme. But for the majority, promises of early cash will be bogus and are likely to result in serious tax consequences.
Tax charges of over half the value of your pension could fall on you for taking an 'unauthorised payment' from your pension fund in this way. In addition, fees deducted from your pension for the transfer are unlikely to be recovered. Such fees tend to be very high and could be 20% or more of your pension savings in some cases.
Most of the time, people targeted by pension fraudsters or scammers are not informed of the potential tax consequences involved