To give an insight into what should happen when someone decides to consolidate their pensions, and in the spirit of Christmas, PensionBee presents a new twist on the timeless ‘12 days of Christmas’ carol: the 12.9 days of a pension transfer.
What happens when you transfer a pension?
Day one: A partridge in a pear tree
The initial request is sent via Origo, the transfer service that compiles the index, to the scheme you are leaving, marking the beginning of the pension transfer journey.
Day two: Two turtle doves
On the second day, the request is placed in a queue, initially marked as ‘unallocated’, before being transferred from one provider to another.
Day three: Three French hens
As the request moves into its third day, it begins to take flight and is marked as ‘in progress’.
Day four: Four calling birds
Depending on the backlog at the scheme you are leaving, the ‘in progress’ stage can take longer than expected.
Day five: Five golden rings
On the fifth day, the two providers may exchange messages to check everything is complete before initiating the disinvesting process.
Day six: Six geese a-laying
Providers may require customers to complete additional forms or provide ID, laying the groundwork for the next step.
Day seven: Sevens swans a swimming
The seventh day sees the scheme you are leaving start the disinvestment period
Day eight: Eight maids a milking
On the eighth day, money managers are hard at work disinvesting funds.
Day nine: Nine ladies dancing
The transfer service sends a message on the ninth day to the new provider, telling them that funds are on the way,
Day 10: 10 Lords a leaping
The scheme you are leaving sends the funds using the new providers’ unique identifying number, as funds leap from one entity to another, during a process which can take up to five working days.
Day 11: 11 pipers piping
The funds are received and invested by the new provider, a melodious moment for the consumer.
Day 12(.9): 12 drummers drumming
The pension transfer is complete on the twelfth day!
Becky O’Connor, Director of Public Affairs at PensionBee, commented: “Transferring a pension can take around 12 days and should be quite a simple process. It could take less than this with speedier pension companies, but it can unfortunately also take a lot longer.
“It might not quite be 12 days to transfer a pension this Christmas for everyone starting the process over the festive period. But as long as you have a consumer-focused provider, you could reasonably expect the move to be complete by mid-January, getting a new year personal finance to-do list off to a flying start ”.
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