Marvin OnumonuPensionBee has called for a 10-day pension switch guarantee after its report, ‘A Switch in Time’, showed delays and problems with the UK’s pension transfer system.
The report, created in partnership with the lang cat, found some pension transfers took less than seven working days, but others dragged on for months or even years.
In one case, a customer waited over 1,000 days for a transfer to go through.
Research found 79% of financial advisers believed transfer delays had a moderate to severe impact on trust, while 82% said problematic transfers harmed the sector’s reputation.
More than half said delays made client communication harder.
Meanwhile, 97% of advisers wanted the worst offenders to compensate affected customers, and 96% backed a change in the law to enforce reasonable timeframes.
74% wanted a consistent process across pension providers.
Some firms managed to complete transfers in under 10 days, proving faster switching is possible.
Others took more than 60 days, with the worst firms taking 66.4 days on average in 2024.
PensionBee’s own average transfer-out time in 2024 was 9.39 days.
The report said the amber and red flag scam prevention process needed reform, as misuse was causing unnecessary delays.
Lisa Picardo, chief business officer UK at PensionBee, said: “The evidence is clear: delays are harming consumers and undermining trust in our industry.
“The system is letting poor performers off the hook and rewarding the wrong behaviours.
“The technology and standards exist to support more efficient pension transfers.
“The will among advisers and consumers exists to see change. What’s missing is meaningful legislation and regulatory enforcement.”
Picardo added: “The Government and regulators must now step in and level the playing field, reshaping the pension transfer system that so desperately needs modernisation.
“That means primary legislation. And above all, that means putting the interests of consumers first. Swift switching isn’t a ‘nice to have’ — it should be a basic right.”
Steve Nelson, insight director at the lang cat, said: “What gets measured gets done, and it’s clear the financial services sector urgently needs to measure and fix the systemic inefficiencies around pension switches that are damaging trust across the board.
“The delays evident from this research aren’t just frustrating admin issues. They’re symptomatic of a wider dysfunction rooted in antiquated manual processes.
“If we want to build trust with the public and close the savings and pensions gaps, the whole industry needs to up its game and be held accountable.”
Nelson added: “It needs to modernise systems and start acting with a shared sense of urgency and responsibility.
“The advice profession has spoken clearly in this research. Now it’s time for those who are able to make a difference to listen and step up.”
