PensionBee calls for 10-day pension switch guarantee

PensionBee 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.