Pension liberation scorpion graphic - Don't let pensions become prey

What is pension liberation fraud?

Pension liberation also known as ‘pension loans’ and ‘pension scams’ is a transfer of a scheme member's pension savings to an arrangement that will allow them to access their funds before the age 55. But accessing pension savings before minimum pension age is only possible in rare cases, like terminal illness. This activity can be fraudulent where individuals are not informed, or are misled, as to the consequences of entering into one of these schemes.

An increasing number of companies are targeting savers claiming that they can help them take their pension cash early. Pension liberation can result in tax charges and penalties of more than half the value of a member’s pension savings, and those being targeted are usually not being told about the potential tax implications. This is in addition to high charges, typically 20 to 30% for entering into one of these arrangements and high risk investments for the remaining pension savings.

Pensions professionals

If your members are transferring their pension, use our action pack to find out more about what pension liberation fraud is, and find resources you can send to help members during transfers.


We’ve developed an action pack to help you find out more about what pension liberation fraud is, and resources you can use when communicating to members.


If you are a pension scheme member and you're concerned that you may have been targeted by pension liberation fraud, contact Action Fraud on 0300 123 2040.

Find out about the dangers of early pension release.

Download an awareness leaflet from the Pensions Advisory Service:

© The Pensions Regulator