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,1 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.
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While some providers have embraced faster, digital transfer methods, some pension administrators continue to rely on outdated paper-based processes, leading to unnecessary bottlenecks.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.”
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