Michelle Cracknell the chief executive of The Pensions Advisory Service announced this week that they were working with The Pensions Ombudsman on a pilot project to help savers who have been scammed rebuild their pension pots. She was speaking at a seminar by the Transparency Task Force, the collaborative campaigning community that was set up drive up the level of transparency in financial services across the world.
She explained that once an individual gets their termination letter from the ombudsman, they will be contacted by The Pensions Advisory Service who will try to help them see what other options they have. "We ask them if they have their full state pension entitlement if they are making the most of their workplace pension scheme, etc."
Michelle Cracknell went on to explain that these appointments are not replacing financial advice.
She said:"Some of our existing guidance staff were specifically trained to do these particular appointments.
"It doesn't go as wide as financial advice. It is really just starting them off to think about what else they can do. Our particular area [of interest] is looking at if they are making the most of pensions offered to them. Because the worst thing is that they sit there thinking that a £180,000 transfer value is going to pop back in into their assets. It is highly unlikely that it will."
The Pensions Advisory Service also announced that it will be taking part in a pilot project to try and prevent people from moving their defined contribution pensions into potentially fraudulent schemes. According to recent statistics, scammers have been suspected to have been involved in one in 12 pension transfer requests, with an estimated £43 million being lost to scammers since April 2014, with the average person targeted losing nearly £15,000.