The debate over pension transfer speeds and security has continued, after analysis from PensionBee suggested that there is no clear correlation between the number of flags raised and the number of scams.

Research from XPS Pensions recently sparked renewed concerns over pension scams, after revealing that the proportion of pension transfers showing signs of a scam rose "sharply" in July 2025, as 94 per cent of cases reviewed by the XPS Scam Protection Service raised at least one scam warning flag.

However, PensionBee compared this with government data, published in 2023, which found that only 2,700 (1 per cent) had a scam risk flag raised.

Of the 2,400 that had an amber flag raised, the overwhelming majority (96 per cent) went on to complete, whereas only 4 per cent of these did not.

Given this, the provider argued that thousands of pension transfers are being held up unnecessarily by providers who are raising flags for transfers that have no real scam risks. 

In particular, the group warned that the Conditions for Transfers Regulations 2021 legislation does not appear to have had a marked impact on the number of pension fraud cases, with the number of reports increasing between 2022 and 2023.

Whilst the latest figures from Action Fraud revealed a slight dip in the cost of pension savings being lost to scams, from £17.7m to £17.65m, The Pensions Regulator (TPR) executive director of regulatory compliance, Gaucho Rasmussen, said this should still serve as an “alarming wake-up call".

The government previously acknowledged concerns around the transfer regulations, pledging to work with The Pensions Regulator (TPR) and industry on potential changes to improve the pension transfer experience, without undermining the policy intent.

Despite the change of government since the 2023 review, this work is seemingly still underway, with Pensions Minister, Torsten Bell, previously telling Pensions Age that "you definitely shouldn't assume that changes in that respect are slotting in after 2030", when asked about the timeline for this work.

Commenting on the need for change, PensionBee director of public affairs, Becky O’Connor, said: "The anti-scam legislation as drafted has been left open to misinterpretation and misapplication, hampering the proper functioning of the pension transfer market to the detriment of consumers, in far too many cases.
 
"The number of flags raised should only be considered meaningful alongside data on the actual number of pension transfer scams that take place over a time period as a way to demonstrate how effective and proportionate the system is at identifying scam attempts. 
 
"Some providers feel they are being forced to apply flags in inappropriate circumstances. Other providers seeking to slow or stop transfers out choose to slavishly apply the rules and flag the greater bulk of their transfers out.

"These practices waste the resources of providers and the time and goodwill of savers trying to do something positive with their pensions.
 
"It is now time to make some much-needed amendments to tackle the huge inefficiencies, unnecessary worries and consumer detriment created by false flags."

PensionBee has repeatedly raised concerns over the current pace of pension transfers, having recently launched a petition calling for a 10-day pension switch guarantee.

Not all in the industry are as concerned about current transfer times, however, as Origo suggested that recent progress painted a "positive story" for savers, after it found that simpler pension transfer times fell to an average of 10.8 days in the 12 months to 30 June 2025.

In addition to this, the Financial Conduct Authority's (FCA) recent review of pension transfers found that most firms complete transfers within a reasonable timeframe, pointing out that good service is not just about how quickly the transfer can happen, but also about protecting savers.

And broader concerns around pension transfers have also been raised, with analysis from People's Pension suggesting that projected losses from poorly informed pension transfer decisions have increased by half a billion pounds in the past 18 months.

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