Up to 70 per cent of people who try to switch investments ultimately abandon the process, leaving millions potentially stuck in underperforming or higher-cost products, according to a report by the Fair Switching Initiative.
The research also highlights inconsistencies in pension transfer times. While some pension providers complete transfers in as little as 5–9 working days, others take 37–66 days or longer, echoing similar findings from research undertaken by PensionBee.
According to the report, these delays are being driven by outdated processes and legacy systems, inconsistent transfer standards between providers, and a lack of clear, enforceable regulatory deadlines.
In the report, British entrepreneur Saira Khan says: “The solution is not complicated, we need clear and simple processes to enable everyone to move their money in a way that is secure, fast and transparent.
“Every provider must play by the same rules and use modern technology to speed things up. No exceptions, no excuses.”
Data from the report also showed that only 13 percent of those undertaking pension transfers felt they had a clear understanding of the process.