Libertatem Pension Liberation Fraud: Early Access Scams
Understanding Pension Liberation Schemes
Pension liberation schemes, including those promoted by Libertatem, promised early access to retirement funds but often resulted in financial mis-selling and significant losses. These arrangements encouraged individuals to transfer out of secure final salary pension plans into high-risk SIPPs or offshore investments.
Many victims were unaware of the tax penalties, fees, or unsustainable returns tied to these transfers. If you suspect you were misled, a free pension consultation can clarify your options.
Risks of Final Salary Pension Transfers
Transferring from a defined benefit (DB) scheme to a SIPP or other arrangement was aggressively marketed as a way to “unlock” cash. However, this often led to:
- Loss of guaranteed lifetime income
- Exposure to high-risk or unregulated investments
- Unexpected tax charges up to 55%
Libertatem and similar firms frequently downplayed these dangers while promoting pension transfer opportunities.
Identifying Mis-Sold SIPPs
Key red flags of a mis sold pension claim include:
- Pressure to transfer quickly without proper risk warnings
- Promises of “guaranteed” high returns
- Investments in non-standard assets like overseas property or carbon credits
One affected investor shared: “I was told my SIPP transfer would grow by 8% annually. Instead, I lost 60% of my retirement savings in an unregulated forestry scheme.”
How Libertatem Exploited Pension Rules
The firm allegedly manipulated pension liberation fraud loopholes by:
- Misrepresenting HMRC early access rules
- Failing to disclose 30-70% fee structures
- Recommending unsuitable investments to meet quota targets
Compensation Pathways
Victims of SIPP transfer UK scams may reclaim losses through:
- Financial Ombudsman Service (FOS) complaints
- Financial Services Compensation Scheme (FSCS) claims
- Legal action against advisory firms
Time limits apply to claims, so seeking a professional claims review promptly is critical.
Next Steps for Affected Individuals
If you transferred pensions between 2012-2018 after contact with Libertatem or similar firms:
- Gather all transfer paperwork and advisor communications
- Document any unsolicited approaches or high-pressure sales tactics
- Consult specialists for a no-win-no-fee assessment
The Financial Conduct Authority (FCA) has warned about ongoing pension liberation fraud risks, making due diligence essential for all retirement planning decisions.