The 10-day pension switch guarantee
PensionBee, a leading online pension provider, is calling for the government to introduce stronger consumer protections to make pension transfers quicker and easier. Its recent report highlights how outdated, paper-based processes and poor industry practices are slowing down transfers – and why a legally backed 10-day guarantee is needed.
So what’s the issue?
PensionBee’s report, A Switch in Time, reveals that some transfers can take over 1,000 days – a delay like this can leave people disengaged from their pensions, potentially stuck in expensive or poor performing funds, unable to take control of their own money.
But what’s behind the delays?
According to the report, it often comes down to poor communication between pension providers, outdated systems and, in some cases, deliberate retention tactics. Even though digital switching technology exists – and is already used by some providers – many still rely on manual, paper-based systems.
Lisa Picardo, Chief Business Officer UK PensionBee, said: “You can switch banks in a week and send money instantly, so why should pension transfers take months and be so stressful? I’ve worked in this industry long enough to know it doesn’t have to be this way.”
How does this affect me?
Delayed pension switching doesn’t just waste time – it can also hurt your retirement pot. People may miss out on better-performing funds or lower fees; not to mention delays can reduce overall engagement with pensions, making it harder to plan for the future.
So what’s the solution?
PensionBee is leading the charge with a parliamentary petition calling for a 10-day pension switch guarantee. Here’s what PensionBee is calling for:
A proper guarantee that switching your pension takes no more than 10 days – with real penalties for providers who drag their feet.
Scam rules that do what they’re meant to: stop actual scams, not block safe, legitimate transfers.
A joined-up team of public bodies to make it all happen, modernise the system and get everything ready for the Pensions Dashboards.
Thank you to PensionBee for sponsoring and helping drive real change in the pensions industry – and for keeping this newsletter free and accessible to all.