PEOPLE considering taking out their pension cash should beware of being targeted by scammers.

New pension laws mean you can draw down all the cash in your pension instead of investing in an annuity which would give you a monthly income.

There are, of course, tax implications, but Taunton and District Citizens Advice Bureau is warning that “persistent and clever scams” are likely to become more widespread.

Elizabeth Luke, financial education co-ordinator at Taunton CAB, said investment scams usually look like genuine opportunities, promising high returns without clarifying the risks involved – she advises that people should “stop and think” before diving in.

She added: “Contact is made unexpectedly offering an investment opportunity, usually implying that the offer is time-limited and you need to act quickly.

“You will probably receive repeated contact and they will try to keep you on the phone for a long time.”

She advised people to only use firms authorised by the Financial Conduct Authority and to get impartial advice to make sure you fully understand the investment product before you part with any money.

She added: “If you have spent 30 years saving for your pension, it is unwise to make a decision in 30 minutes you may live to regret.”

Taunton CAB is at Taunton Library on Tuesday, April 21 offering advice.

If you have been scammed or contacted by an unauthorised firm, report it to the FCA on 0800-1116768.