PensionBee is calling again for the urgent introduction of a legally mandated 10-day pension switch guarantee, as new consumer research reveals the UK’s pension transfer system is failing millions of savers.
Ending Pension Purgatory, builds on this year’s first report – A Switch in Time – and reveals the human toll of sluggish, opaque transfer processes; from repetitive paperwork to months of delays that leave people wondering if they’ll ever see their retirement savings again.
The report finds that nearly half (46%) of consumers who’ve transferred a pension found the process difficult. Three in five (63%) believe delays are actively harming their ability to manage their retirement savings. And almost half (45%) support a strict 10-day maximum timeframe – already proven possible by leading providers.
The case for reform is clear: pension switching is now the second most difficult life admin task after moving house – yet unlike moving, it's becoming far more common. With more frequent job switching and the proliferation of pension pots, switching pensions is fast becoming an everyday necessity. In a financial system where bank accounts can be switched in seven days, consumers are rightly questioning why pensions continue to lag so far behind. Pension switching is a core function of a modern, efficient retirement system – and the current process simply isn’t fit for purpose.
To drive momentum for change, PensionBee will soon open a public petition urging the government to introduce a legally enforceable 10-day pension switch guarantee, calling on policymakers to act now, to enable consumers to take control of their retirement savings, and bring pension transfers into the 21st century.
The report highlights emotionally charged case studies where delays have triggered real distress. One saver was forced to relive grief about a friend’s sudden death, worrying their money would be stuck in limbo if something happened to them. Another questioned their own decision-making after facing dense jargon and obstructive paperwork.
Consumer appetite for reform is overwhelming:
• 63% support a legally mandated pension transfer timeframe;
• 69% want fines for firms that miss the deadline;
• 85% believe their right to switch should be stated on annual pension statements.
With the upcoming Pensions Dashboard likely to spark a wave of savers feeling more empowered to consolidate, PensionBee warns that unless the system is urgently modernised, it will collapse under its own inefficiency – and undermine public confidence in the UK pensions system.
PensionBee is calling for:
1. A legally enforceable 10-day pension switch guarantee, with meaningful penalties for delays.
2. Refreshed scam rules that work to target genuine risk of scams, as opposed to enabling barriers to legitimate transfers to regulated providers.
3. A joint taskforce between the DWP, FCA and 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.
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.”
Ending Pension Purgatory and A Switch in Time are part of PensionBee’s campaign to ensure a faster, fairer and more transparent pension transfer process for all savers. The public petition is also expected to go live soon to support the 10-day pension switch guarantee campaign.
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