Is a pension pot transfer to a better-performing scheme recommended by a cold caller safe?
No. Unsolicited pension transfer recommendations are one of the most financially devastating scam types. Never transfer a pension based on a cold call.
Last reviewed: 1 June 2026
Explanation
Pension transfer fraud causes some of the largest average financial losses of any scam because pension pots often represent lifetime savings. Cold callers recommend transferring your existing pension to a new scheme promising higher returns, often citing overseas investments, storage commodities, or guaranteed income. The new scheme may hold your money in illiquid or fictitious investments before collapsing, or may have been designed solely to extract a large management or transfer fee. Transferring out of a defined benefit pension is particularly harmful as you lose guaranteed income rights that cannot be restored. Before transferring any pension, consult an independent regulated financial adviser, check the scheme on your country's financial regulator register, and verify the transfer is appropriate for your circumstances.
Common red flags
- Unsolicited call or text about pension performance or consolidation
- Promises of returns significantly above current market rates
- Recommendation to transfer a defined benefit pension
- Urgency to transfer before a deadline
- New scheme involves overseas assets, storage commodities, or exotic structures
What to do now
- Hang up and do not engage with unsolicited pension transfer offers
- Consult a regulated independent financial adviser before any transfer
- Check the recommended scheme on your financial regulator's register
- Report the approach to your financial regulator and pension watchdog
Frequently asked questions
Is it ever sensible to transfer a pension?
Sometimes, but only on the advice of a regulated independent financial adviser who has assessed your specific circumstances. The decision should never be driven by a cold caller.