The Saskatchewan Financial Services Commission reports that it’s receiving an increasing number of complaints about pension unlocking scams.
The SFSC says that, while each pension unlocking scam is unique, they are usually designed to look like legitimate investment opportunities, and typically promise the ability to unlock their pension funds without paying any tax. The arrangement often involves the purchase of shares in a company, it notes, and then part of the money used to buy shares is loaned back to the owner of the pension funds.
These sorts of unlocking scams are often targeted at those who are in financial distress and hoping to get immediate access to their locked-in money, it says. “Falling victim to one of these scams could have serious financial implications, including the total loss of your pension funds and significant tax penalties,” it warns.
The SFSC says that those who encounter a scam should seek independent advice, do some independent research, and contact the regulator.