MoneyDepartment for Work and PensionsThe Department for Work and Pensions (DWP) has unveiled new proposalsRory Poulter06:53, 11 Jun 2026Millions of pension savers could gain additional safeguards under a new Government clampdown. The Department for Work and Pensions (DWP) has announced plans to strengthen regulations surrounding pension transfers as ministers aim to prevent increasingly sophisticated scams targeting retirement funds.‌Under the proposals, transfers into certain pension schemes could be automatically blocked where red flags indicate savers are at risk of being defrauded. The initiative follows mounting concerns over the abuse of Small Self-Administered Schemes (SSAS), a type of occupational pension arrangement typically utilised by small businesses but exploited by fraudsters.‌Government figures reveal average losses connected to suspected SSAS pension scams have risen to £38,400 per victim. Ministers are consulting on a new protection measure that would trigger an immediate alert where there is no obvious link between a saver and the scheme they are transferring their pension into.‌The safeguard would enable trustees to stop transfers before funds leave a pension pot and potentially vanish permanently. Pensions Minister Torsten Bell said: "Pension scams can rip away not just people's savings, but the retirement they are looking forward to. This Government is determined to stay one step ahead of criminals who seek to exploit savers."Too often we see fraudsters trying to trick workers into transferring their savings into bogus pensions. We are stepping in to automatically block transfers where the warning signs are flashing red."‌The DWP stated that pension scams continue to be amongst the most destructive types of financial fraud, with victims frequently losing their entire life savings and having minimal chance of retrieving the funds. Simultaneously, ministers are also consulting on eliminating some red tape surrounding legitimate pension transfers following concerns that existing anti-scam regulations can delay genuine transactions.The proposals are part of a broader initiative to combat pension fraud, with the Government signalling that additional measures - including potential new legislation - may be introduced later this year.Article continues belowGaucho Rasmussen, executive director of enforcement and executive general counsel at The Pensions Regulator, commented: "Fraud wrecks lives – and tackling it demands strong, coordinated action. Through the Pension Scams Action Group, which TPR leads, we are working closely with the DWP, law enforcement, the pensions industry and other partners to identify emerging threats and stop fraudsters in their tracks."The consultation comes after a review of pension transfer regulations brought in during 2021, which granted pension schemes authority to suspend or reject transfers when scam indicators are detected. Concerns within the industry have intensified in recent years regarding the possibility of fraudsters exploiting SSAS arrangements to convince savers to transfer retirement funds into high-risk or fraudulent investments.The Government stated the latest proposals aim to bolster protections while making it simpler for people conducting legitimate pension transfers to access their money without unnecessary delays.Choose Daily Mirror as a 'Preferred Source' on Google News for quick access to the news you value.‌Department for Work and PensionsPensionsRed tapeCrime