Pensioners issued 28-day warning | Personal Finance | Finance

Retirement savers are facing a “disappointing” 28-day average wait for companies to transfer pension funds to new providers. The latest figures from My Pension Expert reveal that savers continue to endure “significant delays” in moving their money, with only a marginal improvement from the previous year’s 29-day average.

The data, drawn from 5,163 pension transfers handled by My Pension Expert during the 2023/24 financial year for its Retirement Fairness Index, shows some providers taking up to 96 days to complete transfers, while the fastest managed it in just 18 days.

Essential checks like fraud prevention cause some hold-ups, My Pension Expert said customers mostly remain in the dark as reasons for these delays are often not shared.

Among the speediest firms, Sanlam (18 days), Sun Life Financial of Canada (22 days), Fidelity (22 days), Standard Life (22 days), and Legal and General (23 days) were the quickest to transfer pension funds to a new provider. In stark contrast, Mercer took up to 96 days, NOW: Pensions 69 days, and TPT Retirement Solutions 67 days to execute the same task.

For those considering a pension move, it’s crucial to verify whether your current pension scheme permits transfers and if your chosen new provider will accept them, reports the Mirror.

Lily Megson, Policy Director at My Pension Expert, told the Mirror: “The tiny improvement in pension transfer times is disappointing. It highlights the ongoing challenges faced by UK retirement planners, who regularly face significant delays when moving their savings between providers.”

Ms Megson criticised the system for being inefficient and lacking clarity, pointing out that customers often face considerable delays in transferring their savings.

She said: “Clear visibility into the status of a pension transfer is essential in financial planning improving the speed and communication of the process is vital not only to eliminate undue stress but also to allow people to manage their retirement savings as effectively as possible.”

Ms Megson then called for action, urging for collaboration and better communication within the industry.

She said: “We urge the next Government and the pension sector to collaborate on minimising unnecessary delays and improving communication.

“By doing so, we can create a fairer and more transparent industry, thereby restoring and maintaining the trust of savers.”