A quarter of consumers would withdraw pension savings earlier to cover cost of living expenses, making them vulnerable to scammer ‘misdirection’ tactics, according to the latest research by the Financial Conduct Authority (FCA).
These findings are supported by retirement income market data which showed that the number of pension plans accessed for the first time in 2021/22 increased by 18% to 705,666, up from 596,080 in 2020/21. Given the added consumer vulnerability due to money worries and lack of confidence in pension savings to last through retirement amidst a cost-of-living crisis, the regulator has warned that scammers are using ‘misdirection' tactics to con victims. The FCA compared these scams to magicians using misdirection to divert attention while a trick is carried out. In a bid to uncover how su...
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