Pension transfers have set a new record with 1.2 million defined contribution transfers reported in 2023, marking a 22 per cent increase from 2022, according to Origo.
This year’s volumes surpass one million for the third year in a row. Almost 150 brands use the service provided by Origo, which handles about 95 per cent of the defined contribution pension transfers in the industry.
The service enabled transfers totalling close to £53 billion in 2023 with a 24 per cent increase from the previous year. Half of the transactions were completed within 7 days or less, and the average transfer time in 2023 decreased to 13.6 calendar days, a decrease from 14 days in 2022.
According to the most recent quarterly data from the Origo Transfer Index, easier transfers take 10.1 calendar days, while the average transfer duration from October to December is 12.5 calendar days.
Origo CEO Anthony Rafferty says: “2023 was another successful year for the Origo Transfer Service, which provides an automated, secure transfer service used by the vast majority of the industry.
“Alongside the increased volumes handled through the service, transfers times have continued their downward trend through the year, from an average of 14 calendar days in January 2023 to 12.6 calendar days in December. Times for simpler transfers have also decreased from 12 to 10.1 calendar days over the year.
“The Origo Transfer Index provides the pension ceding data of 30 providers who have agreed to publish their data on a quarterly basis, representing 92 per cent of all transfers completed through the service. The most recent joiners to the Index were Scottish Widows and Clerical Medical in October 2023.
“The Origo Transfer Service has been serving the industry since 2008, developing with the industry to provide a fast, secure pensions transfer service, with the aim to help achieve greater efficiencies and speed of service for the industry and the best outcome for consumers.”