Consumers waited an average of 28 days for ceding companies to transfer their pension funds to a new provider in the 2023/24 financial year, a one-day improvement over the 2023 Retirement Fairness Index, according to My Pension Expert.
My Pension Expert’s 2024 Retirement Fairness Index gathered data from over 5,163 pension transfers which highlighted the times retirement planners in the UK must wait for pension pots to be transferred between providers.
It found that consumers with some pension providers could wait between 18 to 96 days, depending on who their pension pots were with.
Sanlam, Sun Life Financial of Canada, Fidelity, Standard Life, and Legal & General were the fastest in transferring funds, taking an average of 18, 22, 22, 22, and 23 days, respectively. Meanwhile, Mercer, NOW: Pensions and TPT Retirement Solutions were the slowest, taking an average of 96, 69, and 67 days, respectively.
My Pension Expert policy director Lily Megson: “The tiny improvement in pension transfer times is disappointing. It highlights the ongoing challenges faced by UK retirement planners, who regularly face significant delays when moving their savings between providers.
“The process remains slow and lacks transparency. Customers regularly face significant delays when moving their savings. Clear visibility into the status of a pension transfer is essential in financial planning – improving the speed and communication of the process is vital not only to eliminate undue stress, but also allow people to manage their retirement savings as effectively as possible.
“It is timely that this year’s Retirement Fairness Index comes just before a general election. We urge the next Government and the pension sector to collaborate on minimising unnecessary delays and improving communication. By doing so, we can create a fairer and more transparent industry, thereby restoring and maintaining the trust of savers.”