Pensions minister Steve Webb is considering changing the law to combat the growing problem of pension liberation.
Speaking ahead of Thursday's industry summit on the topic, he said the option of changing the law would be discussed. The Pensions Regulator, ministers and other industry players will all attend the crunch meeting later this week.
The Department for Work and Pensions said so-called ‘pension liberation' schemes are becoming an ever more prevalent way to scam people out of their hard-earned pension savings.
Webb said: "Pension liberation fraud is a crime. That is why, as part of our plans to build a fairer society, we are working across government and industry to stamp it out and to raise awareness of the dangers of handing over your pension pot. By coming together this week we will look at what else could be done, including whether we may need to change the law.
"By signing up to one of these schemes you will destroy your future retirement savings. The promise of easy money when times are tough is all too tempting, and there are far too many unscrupulous people who will prey upon this. These people want your pension pot and if you are offered a deal to unlock your pension, don't touch it."
The DWP added in rare cases, such as terminal illness, it is possible to access funds before age 55 from your current pension scheme. But for the majority, promises of early cash will be bogus and are likely to result in serious tax consequences.
Annuity market worth £4bn in 2017
For ‘distress’ caused
Oversees £30bn of advised and D2C assets
Less than a third of top paid employees are women
£1bn business since inception