New research from PensionBee, a leading pension provider in the consumer retirement market, reveals a stark picture of a system buckling under outdated processes, inconsistent standards, exploitation of the system and lack of regulatory enforcement – with one case of a saver waiting more than 1,000 days to switch their pensions.
The findings, based on a survey of over 160 advice professionals conducted by financial services consultancy, the lang cat, form part of PensionBee’s upcoming report A Switch In Time – the first part of a series examining why pension switching in the UK remains so unfit for purpose.
More than one in six advisers have experienced a pension transfer taking longer than a year.
82% believe poor switching experiences are harming the reputation of the financial services industry.
79% say transfer delays have a moderate to severe negative impact on trust in pensions.
Despite clear evidence that efficient transfers are entirely possible — with some providers switching funds in under 10 days — other firms are routinely taking several months or more, according to data collected by PensionBee. In one extreme case, an adviser reported a 1,000-day wait for a single transfer.
A 10-day Pension Switch Guarantee is urgently needed
With pension consolidation a key route for consumers to simplify and better manage their pensions, benefitting from lower fees and stronger engagement which ultimately lead to better retirement outcomes, advisers are voicing frustration at the damage being caused by excessive red tape and inconsistent use of the Amber and Red Flag scam-prevention framework.
The report finds near-universal support for change:
96% of advisers support a change in legislation to mandate a reasonable transfer timescale for pension switches.
74% want a standardised process across all pension providers.
Almost all believe the worst offenders should be held to account.
Lisa Picardo, Chief Business Officer UK at PensionBee, said:
“There should be no more excuses – we’re in 2025, and yet we’re still hearing from advice professionals that consumers are waiting a year, or sometimes even three, for a pension switch to complete.
“Aside from these delays eroding trust in the system and causing embarrassment for the industry at large, they’re critically harming consumers and worsening retirement outcomes.
“Delays in pension transfers prevent people from simplifying and better managing their pensions.
“There’s nowhere to hide; the data highlights exactly where the problems lie, and it shows that the adviser community wants change.
“It’s time for the regulator and Government to drive the modernisation of the industry through regulation, and for the worst offenders to be held to account.
“It’s time to finally give consumers the fast, fair and functional pension transfer system they deserve.”
