Stephen, 59, from Exeter, was one of hundreds of people who were tricked into transferring their pension cash into fraudulent schemes.
Stephen Grimes said his life was turned upside down when he lost two pension pots worth £27,000 to fraudsters. The dad was conned after being promised £4,000 cash and higher returns.
But it turned out to all be a scam. Stephen, 59, from Exeter, was one of hundreds of people who were tricked into transferring their pension cash into fraudulent schemes.
He said: “The scam put my family through turmoil, affecting our livelihoods and all our future plans. We had to raid our other pension pots to pay our mortgage.”
Stephen is now able to access his retirement savings once again after being awarded £23,500 compensation. Stephen is one of more than 2,000 victims of pension scams that have received payouts – with more payments set to follow.
He added: “I have recently needed to step back and work less, so receiving the compensation has helped immensely. I urge others to be on their guard against scammers. Don’t accept cold calls and watch out for bogus cash incentives.”
The Pensions Regulator (TPR), the Fraud Compensation Fund (FCF), The Pensions Ombudsman (TPO) and Dalriada Trustees has so far returned £81.5 million in compensation to members of 58 pension schemes.
Those compensated include victims of the Friendly Pensions Ltd fraud, which saw Susan Dalton and Alan Barratt convicted and jailed in 2022 following a prosecution by TPR for their part in the criminal enterprise that stole £13.7million.
Gaucho Rasmussen, Executive Director of Regulatory Compliance at The Pensions Regulator, said: “We know how devastating the impact of pension fraud can be and hope this compensation will help members of the affected schemes to rebuild their lives.
“We and our partners have identified further opportunities to bring compensation to victims of historic scams – and more payments are to follow later this year and in 2026.
“But prevention remains paramount. Compensation is far from guaranteed for all those impacted by suspected fraud, as not all types of pension schemes used by fraudsters meet the eligibility criteria.”
Sara Protheroe, Chief Customer Officer at the Fraud Compensation Fund, said: “For these members, losing their pension savings due to the dishonest actions of those they put their trust in will have been a deeply distressing experience and the journey to securing redress can be a very long and complex one.
“So we’re really pleased that members of these schemes will now be able to access their pension savings, following the payment of FCF compensation and securing of benefits.”
Dominic Harris, Pensions Ombudsman, said: “I am pleased that we have been able to supply information from our investigations, and work closely with our partners, to help smooth the path to redress through the FCF for the members.
“A lifetime of savings can be stolen in an instant, and I have seen the devastating impact of pensions dishonesty on the members who have brought us their complaints.
“Anyone can be a victim of a scam and the frauds we have investigated have often been extremely sophisticated. I would encourage all pension savers to remain alert for pension scams and be cautious of claims of high returns and low risk.”