Pension transfers stuck in limbo as urgent calls mount for 10-day switch guarantee

Calls for urgent reform of the UK's pension transfer system have ramped up as new research exposes widespread delays. Some savers are waiting months - and in extreme cases, years - to move their retirement savings, according to PensionBee. Data showed that while some providers can complete transfers in as little as five days, others routinely take over two months, and one adviser reported a pension switch that dragged on for more than 1,000 days. The latest findings from PensionBee, based on a survey of over 160 financial advisers, paint a stark picture of a system hampered by outdated processes, inconsistent standards, and a lack of regulatory enforcement.

Lisa Picardo, chief business officer at UK PensionBee, said: "Pension switching shouldn't be so arduous. I've worked in this industry long enough to know it doesn't have to be this way."

More than one in six advisers has experienced a transfer taking longer than a year, and 82% believe these poor switching experiences are damaging the financial services industry's reputation. Nearly four in five advisers say that transfer delays have a moderate to severe negative impact on client trust in pensions.

Ms Picardo continued: "I've experienced first-hand both ends of the spectrum on pension transfers - one that took five months and another that took just six days. This isn't about technical barriers. It's about willpower. If we're serious about building trust in pensions, we need to stop making people jump through hoops just to move their own money."

Despite the introduction of digital processes by some providers, which allow for swift, electronic transfers, many administrators still rely on paper-based methods, leading to unnecessary bottlenecks and frustration for consumers.

For example, while Aviva and Fidelity average transfer times of 5.1 and 7 days, respectively, PensionBee's research showed other firms took more than 59 days on average to complete a transfer.

The overwhelming majority of advisers - 96% - now support legislative changes to mandate a reasonable timescale for pension transfers, and 74% want a standardised process across all providers.

There are growing calls for a legally enforceable 10-day pension switch guarantee, with advocates arguing that such a measure would bring the industry in line with modern expectations and help restore public confidence in the UK pension system.

Ms Picardo said: "Pension transfers are the gateway to better pension engagement, which ultimately leads to better retirement outcomes - and right now, we're slamming that gate shut. We need to evolve the UK pensions system into one that prioritises people, not paperwork and providers that fail to modernise."

A public petition is expected to go live soon to support the 10-day pension switch guarantee campaign.