UK pension provider PensionBee is renewing its call for a legally enforced 10-day pension switch guarantee, warning that long delays and inconsistent processes are causing real harm to savers.
Its latest report, Ending Pension Purgatory, reveals that nearly half of consumers found transferring a pension difficult, while three in five said delays were harming their ability to manage their retirement savings.
The findings follow earlier research with financial advisers that uncovered widespread frustration with delay, with some transfers taking over a year, and a growing view that outdated practices are undermining the credibility of the pensions industry.
PensionBee says pension switching has become an everyday necessity as more people change jobs and build up multiple pots, but the system hasn’t kept pace. Despite some providers routinely completing transfers in under 10 days, others still rely on manual, paper-based processes, with delays stretching to months or even longer. In one case, a transfer reportedly took more than 1,000 days to complete.
Advisers say these delays can lead to poorer client outcomes and reputational damage. According to its Switch in Time report, 79 per cent believe delays have a moderate to severe impact on trust in the industry. The majority also support mandatory time limits for transfers and penalties for firms that repeatedly miss them.
‘Make it easier’
Lisa Picardo, chief business officer 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. 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.
“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.”
PensionBee is calling for:
- A legally enforceable 10-day pension switch guarantee, with meaningful penalties for delays.
- Refreshed scam rules that work to target genuine risk of scams, as opposed to enabling barriers to legitimate transfers to regulated providers.
- A joint taskforce between the Department for Work and Pensions (DWP), the Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) to oversee the implementation of the 10-day pension switch guarantee and reform of the consumer protection framework. This body should drive the digitisation and streamlining of provider processes ahead of the Pensions Dashboards rollout, ensuring the industry is fully prepared to meet its obligations amid growing transfer volumes.
PensionBee argues the sector urgently needs consistent, digital-first standards, and warns that without reform, upcoming changes like the Pensions Dashboard could trigger a surge in demand that overwhelms providers still reliant on slow processes.
The company plans to launch a public petition ‘soon’ to support its call for the 10-day guarantee.
Source: https://thefintechtimes.com/
