PensionBee calls for legislation to end transfer delays that damage trust and harm consumers - reshaping the current system that has rewarded inefficiency and poor practice for far too long

PensionBee, a leader in the consumer retirement market, has today released A Switch In Time (https://asset.cloudinary.com/pensionbee/c863b8d3e348fe589d0dd42224c98256), the first in a three-part campaign series calling for the introduction of a 10-day Pension Switch Guarantee, and exposing the severe inefficiencies and rogue practices that continue to plague the UK’s pension switching system.

The report, created in partnership with financial services consultancy, the lang cat, paints a stark picture of the delays facing consumers as observed by the professional advice industry, looks at the transfer time data – and calls for urgent legislative reform.

While some pension transfers take under seven working days, others drag on for months or even years. In one extreme case uncovered in the research, an adviser reported a customer waiting over 1,000 days for a transfer to complete. The report highlights that these unreasonable delays are not only avoidable, but that they are also potentially in breach of the Financial Conduct Authority’s (FCA) Consumer Duty – causing harm to consumers by preventing them from accessing better products and achieving good outcomes.

Industry dysfunction damaging trust

According to the research, 79% of financial advisers believe transfer delays have a moderate to severe impact on trust. 82% agree that problematic transfers harm the reputation of the financial services industry, while more than 50% report that transfer delays frequently damage client communication.

The profession is unequivocal in its demand for reform:

● 97% believe the worst offenders should be required to compensate affected customers.

● 96% support a change in primary legislation to enforce a reasonable pension switch timeframe.

● 74% want a consistent process across providers.

Proof that speed is possible – but far from the norm

The report also reveals that some firms are achieving switches in less than 10 days – proof that swift transfers are possible. However, others are taking more than 60 days, with the worst-performing firms taking an average of 66.4 days in 2024 (https://www.pensionbee.com/uk/press/transfer-delays).

PensionBee’s own average transfer-out time in 2024 was 9.39 days, demonstrating that secure, fast transfers are not only feasible – they should be expected.

Reform the flag system, enforce accountability and mandate reasonable pension switching timeframes

The report advocates for immediate reform of the Amber and Red Flag Scam Prevention process, citing widespread misuse that is creating unnecessary delays.

It also urges the FCA, The Pensions Regulator, and the Government to legislate for a 10-day Pension Switch Guarantee, supported by binding service standards, mandatory transparency, and penalties for non-compliance.

Lisa Picardo, Chief Business Officer UK at PensionBee, said: “The evidence is clear: delays are harming consumers and undermining trust in our industry. The system is letting poor performers off the hook and rewarding the wrong behaviours. The technology and standards exist to support more efficient pension transfers. The will among advisers and consumers exists to see change. What’s missing is meaningful legislation and regulatory enforcement.

“The Government and regulators must now step in and level the playing field, reshaping the pension transfer system that so desperately needs modernisation. That means primary legislation. And above all, that means putting the interests of consumers first. Swift switching isn’t a ‘nice to have’ — it should be a basic right.”

Steve Nelson, Insight Director at the lang cat, said: “What gets measured gets done, and it's clear the financial services sector urgently needs to measure and fix the systemic inefficiencies around pension switches that are damaging trust across the board. The delays evident from this research aren't just frustrating admin issues. They’re symptomatic of a wider dysfunction rooted in antiquated manual processes.

“If we want to build trust with the public and close the savings and pensions gaps, the whole industry needs to up its game and be held accountable. It needs to modernise systems and start acting with a shared sense of urgency and responsibility. The advice profession has spoken clearly in this research. Now it’s time for those who are able to make a difference to listen and step up.”

-Ends-

Notes to editors:

To download the full report click here: (https://cdn.roxhillmedia.com/production/email/attachment/1710001_1720000/3da4a376298213183b4719a6a6736d61148a19d9.pdf)

To download a picture of Lisa Picardo click here: (https://cdn.roxhillmedia.com/production/email/attachment/1710001_1720000/70377a134e720760a0e9fd4f12ad2f69db306dc3.png)

Contact details

PensionBee

Steve Kennedy / Adam Cooper / Chris Foyle - press@pensionbee.com

About PensionBee

PensionBee is creating a global leader in the consumer retirement market with £6 billion in assets on behalf of 275,000 customers.

Founded in 2014, we aspire to make as many people as possible pension confident so that everyone can enjoy a happy retirement.

We help our customers to combine their retirement savings into a new online account, which they can manage from the palm of their hand.

PensionBee accounts are invested by the world’s largest investment managers, collectively looking after more than $10 trillion in savings between them. Each PensionBee customer has a personal account manager (“BeeKeeper”) to guide them through their savings and retirement journey.

PensionBee has an “Excellent” Trustpilot rating based on over 10,000 reviews.

As a public company, we aspire to the highest standards in everything we do because our customers deserve peace of mind. Our team of approximately 200 professionals, based in London and New York, has one focus: you, our customer.

PensionBee is listed on the London Stock Exchange (LON:PBEE).

Logo

Tags

More Like This

SPRING BUDGET: PENSIONBEE CALLS ON RACHEL REEVES TO REFORM OUTDATED SYSTEM

Delayed retirement now likely for millions as UK pension savings gap widens – Retirement Report

£1,000 retirement savings boost from plans to bring together small pension pots

Pension confidence declines - but not among the older population

Pension plan to double £25 billion+ megafunds, boost investment and improve returns for savers

Latest climate ranking shows UK pensions failure as campaigners accuse large providers of risking savers’ money

Gretel finds 55% of customers forget to notify providers of address change

PSTN switchover delayed