Transfer times have increased by 17 per cent over the last three years, from an average of 10.7 days in 2020 to 12.5 days in 2023, according to a PensionBee analysis of Origo’s most recent Pension Transfer Index.
According to Origo, most pension companies have seen a rise in transfer processing times during the previous three years, with an average of 14 days in 2022 before a minor decline in the previous year.
Pension transfers from 2020 to 2023 took an average of 25 days or longer at LV=, over 50 per cent longer at The People’s Partnership, and Vanguard’s longest period, 23 days, came in 2023 after the company entered the index in 2021.
Many providers and third-party administrators do not use electronic pension transfers or reveal transfer timings, showing minimal industry efforts to increase efficiency for consumers. However, participation in the Origo Index indicates a commitment to transparency and possible progress.
PensionBee, on the other hand, regularly completes pension transfers in an average of 10 days, which is consistent with their “Pension Switch Guarantee” for a speedy, effective, and safe electronic process.
PensionBee director of public affairs Becky O’Connor says: “It’s concerning to see a notable rise in transfer times over the last three years. This latest data underscores the urgency of a transition away from self-regulation within the pensions industry to the implementation of a ‘10-day Pension Switch Guarantee’.
“This timeframe aligns with the independent enforcement already undertaken by the Financial Ombudsman Service. Such a shift is crucial to rebuilding confidence and trust in the pension system, empowering consumers to take charge of their financial future.
“Consumers deserve an efficient pension transfer process and the ability to voice grievances to the Ombudsman, ensuring they have the same switching rights as observed in other markets.”
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