Pensions - Articles - The true scale of Britain's pension fragmentation crisis

 The slow, cumbersome transfer process is the elephant in the room: consumers can switch their bank account in seven days, yet pension transfers regularly drag on for months. PensionBee research shows nearly half of those who have transferred a pension described the process as ‘difficult’. This isn't just inconvenient - it's fundamentally unfair and actively discourages people from consolidating their savings.

 Delivering good outcomes, avoiding harm, and supporting members' in achieving their financial objectives are central to a trustee's existing legal and regulatory obligations. Slow, opaque transfers do the opposite. They erode trust, create barriers to engagement, and trap people in fragmented, sub-optimal arrangements.

 The arrival of pensions dashboards allowing consumers to gain a single view of all their pensions, will further expose the full extent of this fragmentation, creating an inevitable surge in demand for consolidation. If the transfer process remains broken, consumer anxiety and detriment will only increase.

 We know 10-day pension transfers are possible. Major providers already achieve this through swift electronic transfers. The technology exists. The process works. What's missing is clear expectations being set by the government with enforcement from regulators, and the universal adoption of clear industry-wide standards.

 Pensions should be as responsive and accessible as the rest of people's financial lives. A 10-day pension switch guarantee would unlock consolidation at scale, boost retirement outcomes, and restore confidence in a system that so desperately needs it.”

 Pension Data Project