The government and regulators have faced further calls to introduce a 10-day pension switch guarantee, after research from PensionBee revealed a "stark picture" of the transfer delays facing consumers.

The research, undertaken in partnership with the Lang Cat, showed that while some firms are achieving switches in less than 10 days, others are taking more than 60 days, with the worst-performing firms taking an average of 66.4 days in 2024.

PensionBee previously shared early findings from its latest report, which highlighted the impact of these delays, as 82 per cent of financial advisers agree that problematic transfers harm the reputation of the financial services industry.

And further findings have now been shared, revealing that more than 50 per cent have also seen transfer delays frequently damage client communication.

The demand for change was also clear, as nearly all (96 per cent) of financial advisers surveyed said they would support a change in primary legislation to enforce a reasonable pension switch timeframe.

In addition to this, 97 per cent agreed that the worst offenders should be required to compensate affected customers, while nearly three-quarters (74 per cent) are calling for a consistent process across providers.

Given this, PensionBee argued that "immediate reform" of the amber and red flag scam prevention process is needed, warning that there is "widespread misuse" that is creating unnecessary delays.

In addition to this, PensionBee urged the Financial Conduct Authority, The Pensions Regulator, and the government to legislate for a 10-day pension switch guarantee, supported by binding service standards, mandatory transparency, and penalties for non-compliance

PensionBee chief business officer, Lisa Picardo, said: “The evidence is clear: delays are harming consumers and undermining trust in our industry. The system is letting poor performers off the hook and rewarding the wrong behaviours.

"The technology and standards exist to support more efficient pension transfers. The will among advisers and consumers exists to see change. What’s missing is meaningful legislation and regulatory enforcement.

“The government and regulators must now step in and level the playing field, reshaping the pension transfer system that so desperately needs modernisation. That means primary legislation. And above all, that means putting the interests of consumers first. Swift switching isn’t a ‘nice to have’ — it should be a basic right. ”

Adding to this, the Lang Cat insight director, Steve Nelson, said: “What gets measured gets done, and it's clear the financial services sector urgently needs to measure and fix the systemic inefficiencies around pension switches that are damaging trust across the board.

"The delays evident from this research aren't just frustrating admin issues. They’re symptomatic of a wider dysfunction rooted in antiquated manual processes.

“If we want to build trust with the public and close the savings and pensions gaps, the whole industry needs to up its game and be held accountable.

"It needs to modernise systems and start acting with a shared sense of urgency and responsibility. The advice profession has spoken clearly in this research. Now it’s time for those who are able to make a difference to listen and step up.”

---