Pension cold callers could face £500,000 fines as part of planned ban.

The government plans to ban cold calls offering exotic investment opportunities to people cashing in their pension pots.

Savers can now cash in their pension pot from the age of 55. Since the access was permitted for the first time last year, people were taking out sums averaging £20,000. The influx of withdrawals have attracted fraudsters offering false investment opportunities.

Many people with defined benefit schemes will be allowed to transfer to a private scheme to allow access from the age of 55.