The number of defined contribution pension transfers in 2023 soared by 22% to 1.2m despite predictions of a decline in the market.

Industry fintech Origo said its Origo Transfer Service (OTS) recorded the number of transfers up by over a fifth in 2023 from 1m in 2022.

In 2023 the OTS transferred nearly £53billion in pension pots for pension holders, a 24% increase on the previous year. 

Orgio said 2023 was, “a record breaking year for pensions transfers.”

The firm said it was the third year the service has seen volumes growing above one million in the year. 

Origo claims to handle about 95% of the industry’s defined contribution pensions transfers through the Transfer Service.

Some 150 brands use the service, with Equiniti’s EQ Retirement Solutions the most recent joiner, in November 2023.

Despite the increased volume of transfers, Origo said half of transfers were completed in 7 days or under, while the average overall transfer time in 2023 was 13.6 calendar days, down from 14 calendar days in 2022.

The latest quarterly data from the Origo Transfer Index, which records the transfer data from 30 providers, shows an average transfer time from October to December of 12.5 calendar days, with simpler transfers taking 10.1 calendar days. 

Anthony Rafferty, CEO Origo, said: “Alongside the increased volumes handled through the service, transfers times have continued their downward trend through the year, from an average of 14 calendar days in January 2023 to 12.6 calendar days in December. Times for simpler transfers have also decreased from 12 to 10.1 calendar days over the year.  

“The Origo Transfer Index provides the pension ceding data of 30 providers who have agreed to publish their data on a quarterly basis, representing 92% of all transfers completed through the service. The most recent joiners to the Index were Scottish Widows and Clerical Medical in October 2023.”

In May 2022, private equity firm Vespa Capital partnered with the Origo leadership team to acquire the business from a number of providers.

Origo is an industry hub providing connectivity and transfers between providers using agreed standards.