Nearly half (46%) of consumers who have transferred a pension found the process difficult, new research from PensionBee has shown.
Furthermore, three in five (63%) believe delays are actively harming their ability to manage their retirement savings.
The findings are part of PensionBee’s second 10-day pension switch guarantee report, in which it outlines the human toll of the current “opaque” transfer process and calls for the introduction of a legally mandated 10-day pension switch guarantee.
According to the pension specialist, pension switching is now the second most difficult life admin task after moving house and with more frequent job switching and the proliferation of pension pots, switching pensions is becoming more common.
Lisa Picardo, chief business officer UK at PensionBee, said: “Pension switching shouldn’t be so arduous. 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.”
PensionBee said there is strong consumer appetite for reform, with 63% supporting a legally mandated pension transfer timeframe and almost half (45%) supporting a strict 10-day maximum timeframe, while 69% want fines for firms that miss the deadline.
Additionally, 85% believe their right to switch should be stated on annual pension statements.
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.
It is also calling for refreshed scam rules that work to target genuine risk of scams and a joint taskforce between the DWP, FCA and TPR to oversee the implementation of the 10-day pension switch.
Picardo added: “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.”
Main image: manu-schwendener-DSwBHyWKiVw-unsplash
