Marvin OnumonuPensionBee has called on the Government to modernise the UK’s pension transfer system after research found transfers can still take months or even years.
Some providers continue to rely on paperwork and manual processes, with delays causing confusion and frustration for people moving their own money.
PensionBee’s latest report, Faster, Fairer, Digital: The Pension Transfer Reset, set out five recommendations for urgent reform.
These include a 10-day pension switch guarantee, mandatory digital transfers across all schemes, transparent performance data from providers, updated legislation to prevent misuse of anti-scam rules, and a reduction in the six-month statutory transfer deadline.
The research found having both the Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) has led to a fragmented system, with some providers able to complete digital transfers in days while others lag behind.
PensionBee said legacy IT systems and lack of enforceable standards have left savers facing delays and uncertainty.
Over 6,500 people have signed PensionBee’s petition for a 10-day pension switch guarantee ahead of the January 2026 deadline.
PensionBee warned that upcoming changes, including the pensions dashboard rollout and inheritance tax reforms, could trigger more consolidations and more transfer delays without action.
PensionBee’s research found voluntary initiatives like STAR have not resulted in universal adoption or enforceable standards.
The report called on the Department for Work and Pensions (DWP), FCA and TPR to work together on a digital-first pensions system with clear consumer rights and accountability for providers.
Lisa Picardo (pictured), chief business officer UK at PensionBee, said: “Britain’s pension transfer system is broken, but it’s capable of being fixed.
“People quite rightly expect their pensions to work like every other part of their financial life – to be simple, efficient and digital.
“If you can move money between banks in seconds, there’s no excuse for pensions taking months.”
Picardo added: “In 2025, it’s unacceptable that savers are still waiting months – sometimes even years – just to move their own money.
“The technology to deliver fast, secure digital transfers already exists and is proven to work.
“What’s missing is the consistency, accountability and the will to make it universal.”
She said: “It’s now time for the Government and regulators to step in, set enforceable standards, and hold providers to account.
“Savers deserve a system that’s fast, fair and trustworthy – not one that traps them in endless paperwork and delay.”
