Pension warning as ‘100,000 Britons’ set to be affected by access rule change | Personal Finance | Finance

With the age rising, these offers are likely to be rife, however, they are most likely to be a scam.

The Financial Conduct Authority (FCA) states: “You should be very wary of any scheme offering to help you release cash from your pension before you’re 55, as it’s almost certainly a scam.

“This may also be called ‘pension liberation’ or a ‘pension loan’, as it’s often claimed you will borrow money from your pension fund.

“You could face a tax bill of 55 percent, plus other charges, on what you withdraw – and you could also lose all your money.”

People will have to pay tax even if they didn’t realise they had broken the rules, or if they offer to put the money back into their pension.

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