Last year over £17.5m was lost to pension fraud and people are still falling victim to scams
The Department for Work and Pensions has shared a reminder to anyone who manages their pension online.(Image: Adam Gerrard/Daily Mirror)
The Department for Work and Pensions has shared a reminder to anyone who manages their pension online. There were an estimated 12.95 million state pensioners in Great Britain in 2024/25. Around two thirds (8.57 million pensioners) were claiming the pre -2016 State Pension, while 4.38 million were new State Pension claimants.
The ‘old’ State Pension refers to the contributory state retirement pension system in place for the following people who reached State Pension age before April 6 2016. The new State Pension was introduced by the coalition government by the Pensions Act 2014.
It applies to people who reached State Pension age on or after April 6 2016. The full rate of the new State Pension in 2025/26 is £230.25 a week, or £12,005 a year. From the 1940s until April 2010, State Pension Age was 60 for women and 65 for men.
The Pensions Act 1995 included provision to increase the State Pension age for women from 60 to 65 in stages between April 2010 and 2020, to bring it into line with that for men.
As a result of additional legislation passed between 2007 and 2014, the State Pension age is due to rise for both men and women to 67 between 2026 and 2028 and to 68 between 2044 and 2046.
Many people handle their pension online these days. On Facebook the DWP has shared an important reminder about keeping your account safe, it says: “Managing your Pension online?
“Here’s how to protect your pension against fraudsters: Create strong passwords using three random words and enable two-step verification to give your account an extra level of protection.”
According to Action Fraud, in 2024 over £17.5m was lost to pension fraud. Savers and those reaching retirement age are being warned to protect their pensions and look out for criminals trying to catch people out of their life savings.
Reporting analysis suggests the two most prevalent ways criminals targeted victims were investment fraud pressuring tactics, and account takeovers of a victim’s pension scheme by impersonating them.
Action Fraud, with support from the Pension Scams Action Group (PSAG), launched a pension fraud awareness campaign, warning people to take extra measures to protect their pension scheme accounts and to be cautious of investment opportunity offers from criminals that could be targeting them.
What can you do if you have been a victim of pension fraud?
Report pension scams: if you’re worried about a potential pension scam or you think you may have been contacted by a criminal, report it to Action Fraud at actionfraud.police.uk or by calling 0300 123 2040.
If you have made a payment: inform your bank or pension provider as soon as possible, they can help you prevent any further losses. Monitor your bank and pension statements regularly for any unusual activity.
You should be cautious about phone calls which may be about pensions. Cold calling about pensions is illegal and likely a sign of a scam. If you’re thinking about changing your pension arrangements, you should get financial guidance or advice beforehand.
This month, Pensions Minister Torsten Bell affirmed the commitment that pensions will continue rising annually by whichever is highest among inflation, average earnings, or 2.5% would persist.
The minister declared at an event in London last week: “I always say that if you want to know what the government is doing, then you can read the manifesto, because it tells you, which is that the triple lock is staying for the course throughout this parliament.”