The average pension transfer time increased by 17 per cent over the three years to 2023, rising from 10.7 days in 2020 to 12.5 days last year.

In its analysis of Origo’s latest Pension Transfer Index, PensionBee noted that the “vast majority” of pension providers included in the index had seen increases in processing transfer requests over the three years, with transfer times peaking in 2022.

The beginning of the rise in average transfer times coincided with the introduction of measures to help protect pension savers against the threat of scam transfers, with regulations to block suspicious transfers introduced in 2021.

Average pension transfer times fell from 14 days to 13.6 days in 2023.

PensionBee stated that while slow transfer times were identified as a problem by the Financial Conduct Authority in 2015, the issue remained “prevalent amongst a number of key players”.

However, PensionBee noted that, by participating in Origo’s index, these providers had displayed a commitment to transparency and the improvement of transfer times, although those who did not participate in electronic pension transfers or publicly disclose their transfer times showed “limited engagement” in the industry’s efforts to improve transfer efficiency.

“It’s concerning to see a notable rise in transfer times over the last three years,” commented PensionBee director of public affairs, Becky O’Connor.

“This latest data underscores the urgency of a transition away from self-regulation within the pensions industry to the implementation of a ‘10-day Pension Switch Guarantee’.

“This timeframe aligns with the independent enforcement already undertaken by the Financial Ombudsman Service. Such a shift is crucial to rebuilding confidence and trust in the pension system, empowering consumers to take charge of their financial future.

“Consumers deserve an efficient pension transfer process and the ability to voice grievances to the Ombudsman, ensuring they have the same switching rights as observed in other markets.”

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