One last thing to bear in mind is that pension savings are big targets for fraudsters. If someone contacts you unexpectedly offering to help you transfer your pot, it’s likely to be a scam.

Always check a firm’s credentials before speaking to them. If you’re concerned, contact the Financial Conduct Authority (FCA) to check they’re legitimate. To find out more about potential scams and how to avoid them, see the FCA website FCA website This link will open in a new window.

How do I spot a pension scam?

Fraudsters will try different ways to persuade you to part with your pension cash - from promising opportunities that are simply too good to be true, to giving you false information. They might:

• contact you out of the blue, either over the phone, text or email

• claim to know about loopholes that can help you get more than the usual 25% tax-free

• offer high returns of over 8% from overseas investments or new or creative investments

• offer a ‘loan’, ‘saving advance’ or ‘cashback’ from your pension

• suggest you put all your money in a single investment (in most circumstances, a financial adviser will suggest you spread your money across different schemes)

• send paperwork to your door by courier requiring an immediate signature

• say they'll help you access your pension pot before the age of 55 (unless you’re seriously unwell or have a certain type of scheme, this isn’t legally possible)

• pressure you into making a decision quickly

• only have a mobile phone number and/or a PO box address as contact details.

If you’re planning to take your pension early, check whether there will be any penalties. If it’s a workplace pension, you may need your employer’s agreement to do so.

Pension scams are serious. You could lose some, if not all, your pension savings, or end up with a large tax bill (there can be high charges if you withdraw your pension savings early).

The value of investments can fall as well as rise and you may not get back the amount originally invested.