Savers continue to face unnecessary delays when transferring their pensions, with PensionBee’s latest analysis of its own data revealing that some transfers take over two months to complete.
Despite longstanding concerns from regulators and consumer groups, progress remains slow, and transfer times remain lengthy for many customers.
In 2024, the average transfer time among providers that transferred pensions to PensionBee was 22.4 days, highlighting the continued inefficiencies in the pension transfer process since the Financial Conduct Authority first identified delays as a problem in 2015. The average transfer time from the ten quickest providers was 7.6 days, a stark contrast from the slowest ten who averaged 44.2 days to complete a transfer.
PensionBee 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.
Persistent inefficiencies in the transfer process risk further disengagement from pensions, compounding the long-term financial consequences for consumers. PensionBee’s Cost of Disengagement report explores the growing risks of failing to engage with retirement savings, highlighting the urgent need for indusrtry-wide improvements.
Slowest transfers taking more than two months
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.
Failure to adopt digital processes impacts transfer efficiency
While some providers have embraced faster, digital transfer methods, some pension administrators continue to rely on outdated paper-based processes, leading to unnecessary bottlenecks.
Notably, 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.
Time for a ‘pension switch guarantee’
PensionBee has consistently completed transfers in an average of 10 days, aligning with its proposed ‘Pension Switch Guarantee’, which calls for all pension transfers to be processed electronically within 10 days.
Lisa Picardo, Chief Business Officer UK at PensionBee commented:
“No one should have to endure months of waiting just to move their own money.
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.
A Pension Switch Guarantee would bring the industry up to speed, ensuring every saver can transfer their pension quickly, efficiently and hassle-free, to better engage with their retirement and take control of their financial future.”
Appendix
Table 1: 10 slowest transfer times for 2024
| Provider | Average transfer time in calendar days | Consented to transfer times being published on Origo | Workplace or personal | Provider or administrator |
|---|---|---|---|---|
| XPS Adminstration | 66.4 | No | Workplace | Administrator |
| Local Government Pension Scheme | 59.4 | No | Workplace | Provider |
| Railpen | 56.9 | No | Workplace | Provider |
| NatWest Cushon Master Trust | 50.3 | No | Workplace | Provider |
| Universities Superannuation Scheme (USS) | 45.7 | No | Workplace | Both |
| Virgin | 41.3 | No | Personal | Provider |
| Capita | 37.2 | No | Workplace | Administrator |
| Mercer | 34.7 | No | Both | Administrator |
| Scottish Friendly | 26.1 | No | Both | Provider |
| Aon Hewitt | 24.3 | No | Workplace | Administrator |
Includes all ceding providers where at least 100 transfers have taken place. Includes Defined Contribution and Defined Benefit Pensions. Some providers use Origo but do not consent to having their transfer times published.
The 2024 figure for NatWest Cushon Master Trust is the average transfer time for NatWest Cushon Master Trust (36.3 days), Creative Pension Trust (63.9 days) and The Salvus Master Trust (50.8 days), as the latter two were acquired by Cushon in 2020 and 2021 respectively.
Table 2: 10 quickest transfer times for 2024
| Provider | Average transfer time in calendar days | Consented to transfer times being published on Origo | Workplace or personal | Provider or administrator |
|---|---|---|---|---|
| Royal London | 9.4 | Yes | Both | Provider |
| Zurich | 9.3 | Yes | Both | Provider |
| Standard Life | 8.9 | Yes | Both | Provider |
| Hargreaves Lansdown | 8.7 | Yes | Both | Provider |
| Sanlam Investments & Pensions | 8.6 | No | Both | Provider |
| True Potential | 7.3 | No | Personal | Provider |
| ReAssure | 7.1 | Yes | Both | Provider |
| Fidelity | 7.0 | Yes | Both | Provider |
| Aviva | 5.1 | Yes | Both | Provider |
| Nutmeg | 4.8 | No | Personal | Provider |
Includes all ceding providers where at least 100 transfers have taken place. Includes Defined Contribution and Defined Benefit Pensions. Some providers use Origo but do not consent to having their transfer times published.
