Becky O’Connor, Director of Public Affairs at PensionBee, commented: “Today, we are pleased to welcome the new Pensions Minister. This will be a crucial appointment, given Labour’s manifesto commitment to a comprehensive review of the pensions and retirement savings system, a measure that could potentially benefit millions of savers.”
Work to be done on pension transfers
“One of the new Pensions Minister’s main priorities must be tackling the long-standing pension transfer debacle, which unfairly prevents consumers from exercising their switching rights, often leading to widespread anger and confusion.
An effective pension system requires the active participation of savers. However, transfer times across the industry have been gradually increasing over the last four years. While many providers commit to publishing their transfer times, to improve their products and treatment of customers, many still do not.
Our own transfer data highlights a persistent problem with pension administrators in particular, who in some instances, take on average more than two months to transfer a pension to a new provider. This is an unnecessarily long period, especially in an era of electronic transfers.
A handful of providers continue to misuse the Department for Work and Pensions’ anti-scam legislation; delaying transfers by raising unnecessary amber flags or refusing electronic responses, instead forcing slow paper forms.
To create a safe, fair and well-functioning pension system for everyone, the new Pensions Minister must look to strike a balance between robust protections against scams and a smooth and expedient transfer process. It’s time to move away from self-regulation and implement a ‘10-day Pension Switch Guarantee’, a time period already independently enforced by the Ombudsman. These steps are crucial to rebuilding confidence and trust in the pension system, enabling consumers to take charge of their financial future.”
Table 1: Overall average transfer times in days from providers who are listed on Origo’s Pension Transfer Index (2021 to 2024): analysis of the 5 slowest and 5 fastest providers, including the overall index average and comparison to PensionBee
| 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|
| Vanguard | 18.7 | 19.1 | 23.0 | 24.8 |
| LV= | 25.1 | 36.0 | 25.7 | 24.7 |
| People’s Partnership (formerly B&CE) | 28.1 | 39.5 | 20.3 | 19.1 |
| Smart Pension | N/A | 17.6 | 17.8 | 18.6 |
| InvestAcc | 12.9 | 12.4 | 16.3 | 18.2 |
| Fidelity | 8.0 | 9.9 | 8.9 | 8.9 |
| Clerical Medical | N/A | N/A | 7.7 | 8.0 |
| NFU Mutual | 5.2 | 6.2 | 7.3 | 7.0 |
| MetLife | 6.9 | 6.4 | 6.2 | 6.1 |
| Forester Life | 7.3 | 5.7 | 5.3 | 5.2 |
| PensionBee | 9.8 | 10.4 | 10.5 | 10.1 |
| Overall index transfer time | 13.4 | 14.0 | 12.5 | 12.3 |
Source: Origo Pension Transfer Index, average pension transfer times in days from 1st January 2021 to 31st March 2024. Full list available here.
Table 2: Overall average transfer times to PensionBee in days from providers who are not listed on the Origo PensionTransfer Index: analysis of the ten slowest pension administrators during Q1 2024 and all time
| 2024 | Overall transfer time (all time) | |
|---|---|---|
| DHL Pensions | 112.9 | 57.7 |
| Options Pensions (Carey Pensions) | 88.1 | 101.7 |
| Local Government Pension Scheme | 66.8 | 47.5 |
| XPS Administration | 65.9 | 66.9 |
| HS Pensions | 56.3 | 56.7 |
| Creative Pension Trust | 54.0 | 105.8 |
| Buck Pensions | 50.2 | 50.8 |
| Cushon Master Trust | 44.0 | 50.9 |
| Mercer | 37.1 | 32.0 |
| Capita | 33.7 | 33.3 |
| Overall sample | 27,965 records | 512,570 records |
Source: PensionBee, average pension transfer times to PensionBee in days from January to March 2024, and all time.
