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Pensions Minister sets out consultation to protect pension savers from SSAS scams

The consultation is part of a wider Government programme to tackle pension fraud, in line with the Government Fraud Strategy 2026 to 2029.

3 min read
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Pensions Minister sets out consultation to protect pension savers from SSAS scams
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Pensions Minister Torsten Bell has published a consultation aimed at reducing scams in Small Self-Administered Schemes (SSAS). 

The consultation sets out targeted measures to address fraud risk in SSASs and is part of a wider Government programme to tackle pension fraud, in line with the Government Fraud Strategy 2026 to 2029.

Evidence suggests SSASs may be more vulnerable to fraudulent misuse, even though they make up a minority of the pensions market. 

Data from Report Fraud showed the average financial loss in 2024 to 2025 was £18,400, rising to £38,400 when investment was the main vehicle for pension fraud.

REACTION:

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David Brooks, head of policy at Broadstone: 

“The Government is right to maintain a laser focus on pension scams and developing a comprehensive and robust scam protection framework will be essential to ensuring savers are able to avoid the significant financial and emotional damage that these criminals can cause.

“Small Self-Administered Schemes play an important role in creating retirement savings for many business owners and entrepreneurs. 

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“The proposal to move from an amber to a red flag where an employment link cannot be demonstrated is a targeted intervention that should help prevent transfers into arrangements that may not be operating for legitimate pension purposes.

“Importantly, these measures represent only the first stage of what appears to be a much broader Government focus on tackling pension scams and fraud. 

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“As DC pension savings continue to grow, increasingly large retirement pots are becoming more attractive targets for scammers. 

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“At the same time, fraudsters are continually adapting their methods, making greater use of sophisticated investment structures, digital channels and increasingly convincing approaches to gain savers’ trust.

“It is therefore encouraging to see the Government signalling further work on scam prevention, transfer processes and member protections. 

“The industry will need to remain vigilant and continue working closely with regulators, government and law enforcement to ensure safeguards evolve as quickly as the threats they are designed to combat. 

“Protecting savers’ confidence in the pensions system will be critical as more individuals take greater responsibility for their retirement decisions.”

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Maurice Titley, commercial director for data & dashboards at Lumera: 

“Pension fraud continues to evolve, and as DC pots grow in size and complexity, so too does the incentive for scammers to target them. 

“Government action to strengthen protections is therefore both timely and necessary, not least with the full public launch of the MoneyHelper pension dashboard getting closer.

“The proposed introduction of a new red flag on transfers where there is no clear employment link with the receiving SSAS is a sensible enhancement. 

“It addresses a known vulnerability and gives trustees and providers a clearer basis on which to challenge or stop potentially suspicious transfers before harm is done.

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“However, this is not just an issue confined to SSASs. The wider DC pensions market also has a clear role to play in strengthening defences against fraud, particularly through better use of technology, data sharing and more robust transfer due diligence processes. 

“As scams become more sophisticated, the industry’s ability to detect and disrupt suspicious activity needs to evolve in step.”

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