Marvin OnumonuPensionBee has called for a legally enforceable 10-day pension switch guarantee, saying pension transfers are taking too long and leaving savers stuck in what it called ‘pension purgatory’.
Research found nearly half (46%) of people who have transferred a pension found it difficult, while three in five (63%) believed delays were stopping them from managing their retirement savings properly.
Almost half (45%) of those asked backed a strict 10-day switching deadline, which leading providers have managed to hit.
PensionBee said switching pensions is now the second hardest admin task after moving house, but is happening more often because people switch jobs more and have more pension pots.
The research also found 63% backed a legal time limit for transfers, 69% wanted fines for firms that missed the deadline, and 85% wanted their right to switch mentioned on annual statements.
PensionBee warned that with the Pensions Dashboard coming soon, the system could struggle to cope with more people wanting to move their pensions if things do not improve.
PensionBee is planning a public petition to press the Government for change.
It also called for new scam rules that target real risks, not just create barriers, and a joint taskforce between the Department for Work and Pensions (DWP), Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) to bring in the 10-day switch guarantee and update consumer protection.
Lisa Picardo, chief business officer UK at PensionBee, said: “Pension switching shouldn’t be so arduous. I’ve worked in this industry long enough to know it doesn’t have to be this way.
“I’ve experienced first-hand both ends of the spectrum on pension transfers – one that took five months and another that took just six days.
“This isn’t about technical barriers. It’s about willpower. If we’re serious about building trust in pensions, we need to stop making people jump through hoops just to move their own money.”
Picardo added: “Pension transfers are the gateway to better pension engagement, which ultimately leads to better retirement outcomes – and right now, we’re slamming that gate shut.
“We need to evolve the UK pensions system into one that prioritises people, not paperwork and providers that fail to modernise.”
