Savers continue to face unnecessary delays when transferring their pensions, with the latest data revealing that some transfers are taking more than two months to complete.
Despite longstanding concerns from regulators and consumer groups, progress remains slow and transfer times remain lengthy for many customers, warned pension consolidator PensionBee.
In 2024, the average transfer time among providers that transferred pensions to the online pension provider was 22.4 days.
That highlights continued inefficiencies in the pension transfer process since the FCA first identified delays as a problem in 2015, the firm said.
The average transfer time at PensionBee from the 10 quickest providers was 7.6 days, a stark contrast from the slowest ten who averaged 44.2 days to complete a transfer.
The company has consistently recorded a transfer out time of 10 days, demonstrating that swift and efficient transfers are possible when providers prioritise customer experience and embrace digital processes, it said.
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While some providers have embraced faster, digital transfer methods, some pension administrators continue to rely on outdated paper-based processes, leading to unnecessary bottlenecks, PensionBee said.
It said Capita and Aon Hewitt, two workplace pension administrators, persist in using only paper-based transfers, recording transfer times of 37.2 days and 24.3 days, respectively.
Meanwhile, providers such as Aviva (5.1 days), Fidelity (7.0 days), and Standard Life (8.9 days) demonstrate that swift, electronic transfers are possible, suggesting that the worst delays could be avoided with better industry practices.
Lisa Picardo, chief business officer UK at PensionBee said: “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 said a pension switch guarantee “would bring the industry up to speed, ensuring every saver can transfer their pension quickly, efficiently and hassle-free.”
