POLICE are warning people not to fall foul of a pension scam that could see them losing more than half of their savings.

The scam – pension liberation fraud – involves cold calls or unsolicited texts from a contact centre offering people the chance to cash in on their pensions before the normal private pension early retirement age of 55.

Mark Aldridge from Lancashire Constabulary’s economic crime unit said: “We want as many people as possible to be aware of this scam.

“When these type of companies contact you they may not fully explain to you about the fees charged or the fact that by removing your funds before 55 there is a liability for tax.”

Anyone who thinks they are the victim of Pension Liberation Fraud should report it to Action Fraud on 0300 123 2040 or at www.actionfraud. police.uk.