How to Avoid State Pension Scams

The Golden Rules

Common State Pension Scams

1. "Unlock Your Pension Early" Scam

The pitch:

• "Access your State Pension before age 66"
• "Unlock your pension pot early"
• "Get a cash advance on your State Pension"

The truth:

• You CANNOT access State Pension before State Pension age
• Anyone claiming otherwise is lying
• This scam usually involves transferring private pensions (not State Pension) into high-risk investments
• You'll lose money and face tax penalties

Red flags:

• Cold calls or texts offering early access
• Pressure to act quickly
• Claims of "loopholes" or "government schemes"
• Fees to access "your own money"

2. "Free Pension Review" Scam

The pitch:

• "Free State Pension review"
• "We'll maximize your entitlement"
• "Government-approved pension check"

The truth:

• Your State Pension forecast is ALWAYS free at gov.uk
• DWP doesn't charge for checking your forecast or NI record
• Scammers use "free reviews" to collect personal information
• They may sell you unnecessary products or services

Red flags:

• Unsolicited offers of "free" reviews
• Requests for NI number, bank details, or passwords
• Claims they can "find missing money"
• Pressure to pay for "application processing"

3. "You're Owed Money" Scam

The pitch:

• "You're owed £10,000 in State Pension arrears"
• "WASPI women compensation available now"
• "Claim your pension refund"

The truth:

• If DWP owes you money, they'll contact you directly or it will show on your forecast
• There is NO current WASPI compensation scheme (despite campaigns, government hasn't approved payments)
• Scammers charge fees to "help you claim"

Red flags:

• Claims of large sums owed
• Fees to "process your claim"
• Urgency ("claim expires soon")
• Requests for upfront payment

4. "Voluntary NI Fee" Scam

The pitch:

• "Pay us to fill your NI gaps"
• "Processing fee for voluntary contributions"
• "We'll handle your voluntary NI for £200"

The truth:

• You pay voluntary NI directly to HMRC - no middleman needed
• There are NO processing fees
• You can do this yourself for free

Red flags:

• Third parties offering to "handle" voluntary NI
• Fees on top of the NI contribution amount
• Complicated payment processes

5. Phishing Scam (Fake DWP Contact)

The pitch:

• Email/text claiming to be from DWP
• "Your State Pension claim needs verification"
• "Update your bank details to continue payments"
• Contains links to fake websites

The truth:

• DWP will NEVER email or text asking for personal information
• They don't send links to update bank details
• Fake websites look almost identical to real gov.uk

Red flags:

• Emails/texts from non-gov.uk addresses
• Poor grammar or spelling
• Urgent threats ("payment suspended")
• Links to websites (check URL carefully - should be gov.uk, not gov.co.uk or similar)

6. "Pension Increase Secret" Scam

The pitch:

• "Secret loophole to double your State Pension"
• "Government doesn't want you to know this"
• "Increase your pension by £5,000/year"

The truth:

• State Pension calculation is straightforward: qualifying years ÷ 35 × £230.25
• There are NO secret loopholes
• Only ways to increase it: fill gaps, defer claiming, or work more years

Red flags:

• Claims of "secrets" or "loopholes"
• Promises that sound too good to be true
• Paid courses or ebooks about "hacking" State Pension

How to Protect Yourself

1. Never Pay Fees for State Pension Services

• Checking forecast: FREE at gov.uk
• Checking NI record: FREE at gov.uk
• Claiming State Pension: FREE (call 0800 731 0469 or claim online)
• Paying voluntary NI: Only pay the NI amount to HMRC, no processing fees

2. Only Use Official Government Websites

• Official website: www.gov.uk
• Check the URL carefully (not .co.uk, not .com)
• Look for the padlock symbol (https://)
• Never click links in emails - type gov.uk into your browser

3. Never Share Personal Information

Never give out:

• National Insurance number (unless YOU initiated contact with official DWP)
• Bank account details
• Government Gateway passwords
• Debit/credit card numbers
• Mother's maiden name or other security questions

4. Be Suspicious of Unsolicited Contact

• DWP rarely calls out of the blue
• They will NEVER ask for payment or bank details by phone
• If in doubt, hang up and call official number yourself: 0800 731 0469

5. Ignore Cold Calls

• Legitimate pension services don't cold call
• It's illegal to cold call about pensions (since 2019)
• If someone calls about your pension, it's likely a scam
• Hang up immediately

6. Don't Be Pressured

• Scammers create urgency ("claim expires tomorrow")
• Legitimate government services don't have artificial deadlines
• Take time to think and research
• Discuss with family or trusted advisor

What DWP Will and Won't Do

DWP WILL:

• ✓ Provide free State Pension forecasts at gov.uk
• ✓ Write to you about your State Pension (by post)
• ✓ Answer questions if YOU call them (0800 731 0469)
• ✓ Process your State Pension claim for free
• ✓ Send official letters with DWP letterhead

DWP WON'T:

• ✗ Email or text asking for personal information
• ✗ Call asking for bank details or passwords
• ✗ Ask for payment to check or claim your pension
• ✗ Threaten to suspend payments unless you act immediately
• ✗ Send emails with links asking you to "verify" information
• ✗ Use third-party companies to contact you

Real Scam Examples

Example 1: The Fake DWP Email

Email received:

Subject: Urgent - State Pension Payment Suspended

Dear Pensioner,

Your State Pension payment has been suspended due to unverified bank details. Click here to update your information within 48 hours or payments will be permanently stopped.

Department for Work and Pensions

Red flags:

• Sent from "[email protected]" (not gov.uk)
• Creates urgency (48 hours)
• Threatens to stop payments
• Generic greeting ("Dear Pensioner")
• Contains link to fake website

What to do: Delete immediately. Never click the link.

Example 2: The Cold Call

Phone call received:

"Hello, I'm calling from the Pension Advisory Service. We've identified that you're entitled to an additional £8,000 in State Pension. To process your claim, we need to verify your identity. Can I take your National Insurance number and date of birth?"

Red flags:

• Unsolicited call
• Claims you're owed money
• Asks for NI number immediately
• Creates sense of opportunity (don't want to miss out)

What to do: Hang up. If you're concerned, call DWP yourself on 0800 731 0469.

Example 3: The "Free Review" Letter

Letter received:

We're offering a free State Pension review to maximize your entitlement. Our expert advisors can find additional benefits worth thousands. Call now for your free consultation.

Small print: Application processing fee £299

Red flags:

• Unsolicited marketing
• Claims of "maximizing entitlement"
• "Free" review but hidden fees
• Not from official DWP

What to do: Ignore. Check your forecast for free at gov.uk.

If You've Been Scammed

Immediate Actions

1. If you gave bank details:
   • Contact your bank immediately
   • Ask them to block any suspicious transactions
   • Consider changing account numbers
2. If you gave passwords:
   • Change all passwords immediately
   • Especially Government Gateway, email, banking
3. If you transferred money:
   • Contact your bank's fraud department
   • May be able to recover some money
   • Act quickly (within hours/days)

Report the Scam

Action Fraud:

• Phone: 0300 123 2040
• Online: actionfraud.police.uk
• UK's national fraud reporting centre

Citizens Advice Scams Action:

• Phone: 0808 250 5050
• Provides support for scam victims

Report phishing emails:

• Forward to: [email protected]
• NCSC analyzes and takes down scam websites

Report scam texts:

• Forward to: 7726 (spells SPAM)
• Your mobile provider will investigate

Staying Safe: Quick Checklist

Before giving information:

• ☐ Did I initiate this contact, or did they contact me?
• ☐ Is this the official government website (gov.uk)?
• ☐ Are they asking for payment for a free service?
• ☐ Are they creating urgency or pressure?
• ☐ Does this sound too good to be true?

If unsure:

• ☐ Hang up / close email / don't click link
• ☐ Call official DWP number yourself: 0800 731 0469
• ☐ Check gov.uk for legitimate information
• ☐ Discuss with family or trusted advisor

Legitimate State Pension Resources

Official Government Services (All Free)

• State Pension forecast: gov.uk/check-state-pension
• NI record: gov.uk/check-national-insurance-record
• Future Pension Centre: 0800 731 0175
• Pension Service: 0800 731 0469
• HMRC NI helpline: 0300 200 3500

Trusted Information Sources

• Official GOV.UK State Pension pages
• MoneyHelper (government-backed free guidance)
• Pensions Advisory Service (free, independent)