A FINANCIAL adviser says she is receiving calls about fraud on a weekly basis following the government’s pension reforms.

Karen Rayner says people can lose their pensions to scammers in an instant – and that many more people are sleepwalking into trouble by not taking expert advice.

Ms Rayner, who founded the Fordingbridge-based Wealth Care Partnership in 2007 with fellow director Tim Anstee, said the problems had followed the changes to the law enabling over-55s to more easily access their pension savings – including the ability to withdraw lump sums.

“It has become so complicated it is easier for people to become defrauded,” she said.

“Criminals are clever, technology-savvy and can relieve victims of their hard-earned pensions in an instant.”

She said people were more vulnerable if they had never consulted an adviser before.

“People are living longer; they are dealing with their own busy lives and possible retirement and at the same time dealing with the needs of their ageing parents,” she added.

“There is often a feeling of guilt, emotion and illness, such as early stage dementia, all factors which criminals can use to their advantage.”

The new Care Act 2014, could add to the difficulty with pension pots being included in the means test threshold, she said.

Ms Rayner added: “People really need to be talking to someone who understands the Care Act and how assets will be considered.”

“I feel very strongly that people should seek regulated advice, from a professional expert who must adhere to absolutely high standards.

“It is important to understand the difference between the guidance offered by the new government service, Pension Wise, and the regulated advice you receive from a financial adviser. Pension Wise can discuss your pension options but they won’t recommend any products or tell you what to do with your money.

“A financial adviser can look at your individual circumstances and recommend what you can do with the money in your pension pot,” she added;

“This industry as a whole frankly hasn’t done itself any favours over the years and it can be difficult for people to know where to go.”

She urged people to ask trusted family and friends which advisers they would recommend before making a shortlist and checking each one out.