Jessica O'ConnorSavers continue to face unnecessary delays when transferring their pensions, as PensionBee’s latest analysis revealed that some transfers take over two months to complete.
Despite longstanding concerns from regulators and consumer groups, progress remains slow, and transfer times remain lengthy for many customers.
In 2024, research revealed that the average transfer time among providers that transferred pensions to PensionBee was 22.4 days.
The average transfer time from the 10 quickest providers was 7.6 days, a stark contrast from the slowest 10, who averaged 44.2 days to complete a transfer.
At the extreme end of the scale, XPS Administration recorded an average transfer time of 66.4 days, more than 13 times longer than the industry’s most efficient performers.
Other workplace pension providers also recorded substantial delays, including Railpen (56.9 days) and the Local Government Pension Scheme (59.4 days), highlighting ongoing inefficiencies in the system.
While some providers have embraced faster, digital transfer methods, some pension administrators continue to rely on outdated paper-based processes, leading to unnecessary bottlenecks.
Meanwhile, providers such as Aviva (5.1 days), Fidelity (7.0 days), and Standard Life (8.9 days) demonstrated that swift, electronic transfers are possible, suggesting that the worst delays could be avoided with better industry practices.
PensionBee said it has consistently completed transfers in an average of 10 days, aligning with its proposed ‘Pension Switch Guarantee’, which calls for all pension transfers to be processed electronically within 10 days.
Lisa Picardo, chief business officer UK at PensionBee, said: “No one should have to endure months of waiting just to move their own money.
“While some pension providers are setting the standard with swift, digital transfers, others are stuck in the past, creating needless friction and delays.
“This continued inefficiency not only frustrates consumers but also undermines trust in the pension system.”
She added: “A Pension Switch Guarantee would bring the industry up to speed, ensuring every saver can transfer their pension quickly, efficiently and hassle-free, to better engage with their retirement and take control of their financial future.”
