2023 saw another record breaking year of pensions transfers, according to annual data from the Origo Transfer Service.
The service, which handles around 95% of the industry’s defined contribution pensions transfers, processed over 1.2 million defined contribution pensions transfers in 2023, up over 22% from just over 1 million in 2022. This equates to £53billion transferred, a 24% increase on the previous year.
The fintech says this is the third year the service has seen volumes growing above one million in the year.
Despite the increased volume of transfers, half of transfers were completed in 7 days or under, while the average overall transfer time in 2023 was 13.6 calendar days, down from 14 calendar days in 2022.
The latest quarterly data from the Origo Transfer Index (see table below), which records the transfer data from 30 providers, shows an average transfer time from October to December of 12.5 calendar days, with simpler transfers taking 10.1 calendar days.
Commenting on the data, Anthony Rafferty, CEO of Origo, said: “2023 was another successful year for the Origo Transfer Service, which provides an automated, secure transfer service used by the vast majority of the industry.
“Alongside the increased volumes handled through the service, transfers times have continued their downward trend through the year, from an average of 14 calendar days in January 2023 to 12.6 calendar days in December. Times for simpler transfers have also decreased from 12 to 10.1 calendar days over the year.
“The Origo Transfer Index provides the pension ceding data of 30 providers who have agreed to publish their data on a quarterly basis, representing 92% of all transfers completed through the service. The most recent joiners to the Index were Scottish Widows and Clerical Medical in October 2023.
“The Origo Transfer Service has been serving the industry since 2008, developing with the industry to provide a fast, secure pensions transfer service, with the aim to help achieve greater efficiencies and speed of service for the industry and the best outcome for consumers.”
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