Pension scams warning

Anyone confused or anxious about the inheritance tax (IHT) changes being introduced for pensions needs to be aware that scammers might try to target their savings.

16 Jun 2026

By Jane Thackstone

Changes to pensions

From 6 April 2027, inherited pension funds will be subject to IHT unless inherited by a spouse or civil partner. Not surprisingly, scammers are using the change as an opportunity to target your pension savings. The scam works by offering a ‘safe haven’ overseas for your pension savings. Two problems here: one is quite important, but the second is more serious:

First problem: For anyone who is a long-term resident in the UK, moving a pension fund overseas will not affect the IHT position because worldwide assets – including overseas pension funds – are included as chargeable assets for UK IHT purposes.
Major problem: Whether the tax planning works or not is irrelevant as the fraudster will simply plunder your pension fund.

The scams you need to know

Pension scams are becoming increasingly sophisticated, with scammers using artificial intelligence (AI) and deepfake technology to make the scam appear more convincing. There are several red flags to watch out for:

The first warning should be if the initial email, call or message comes unexpectedly. Cold calling about pensions is illegal, so you should treat any unsolicited approach with suspicion.
Along with the ‘IHT saving’, the scammer will tempt you with the higher returns available if funds are moved.
The scammer will want to apply pressure by saying you only have a limited amount of time to accept their offer.

A scammer wants their victim to act impulsively and alone; they definitely don’t want them to obtain professional advice.

Should you agree to transfer your funds, the scammer will often provide coaching on how to circumvent your pension provider’s safety rules: for example, by providing an answer as to why funds are being moved.

The old adage of ‘it sounds too good to be true’ is invariably true in these cases, so any approach should be treated with extra caution.

The Financial Conduct Authority’s online tool to check whether a company is authorised or not is available: FCA.org.uk: FCA Firm Checker.