The average pension transfer time fell in 2024, while the volume of transfers increased, new data from Origo has revealed.
Simpler pension transfers took an average of 10.5 days to complete in 2024, while the overall average pension transfer figure, allowing for slightly more complex transfers, was 12.3 days.
Origo said in 2024, around half of all transfers completed in just under seven working days, while for the providers who opted to share their data for the index, it was 6.7 days.
In contrast, in January 2023, overall transfer times were 14 calendar days, while simpler transfers took 12 days on average to complete.
The transfer service provided by Origo accounts for around 80% of the all defined contribution pension transfers in the UK. Firms which publish their transfer times make up 90% of all completed transfers in the period from 1 January 2024 to 31 December 2024.
While transfer times fell, both the volume of transfers and transfer values have increased year-on-year, the data showed. A total of 1.5 million transfers were completed last year, worth around £66.7 billion. This was up from 1.2 million transfers in 2023 worth £52.4 billion. In 2022, just over one million transfers were completed with a value of £42 billion.
Anthony Rafferty, CEO of Origo said: “As the years roll by and pension transfer volumes and values consistently increase, it’s great to see transfer times come down. Transfer volumes for 2024 were up 25% on the previous year and a massive £66.7 billion of pension savers’ money transferred quickly and safely.
“On average, consumers are likely to see their pension fund appear with their chosen provider within a matter of days from starting the process.”
Rafferty said previously there had been concern that ceding providers might try to hold on to funds for as long as possible and this could impact transfer times, but this does not appear to be the case.
“The narrative of the problems in the transfer arena is largely due to a minority of outliers who still use manual processes and are not taking advantage of the digital world we live in. But thankfully most are doing the right thing for their clients and the very fact that so many firms are prepared to publish their transfer times should help drive others forward. What we need to see now is for those outliers to raise their game, so all customers get a positive transfer experience,” he added.
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