The important thing purpose stopping folks from transferring their pensions: ‘Not match for objective’

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Your help makes all of the distinction. Learn extra Prolonged delays are inflicting some pension savers to surrender on shifting their pensions, a client group has stated.

The advantages of transferring or combining pension financial savings embody decrease charges or much less admin.

However Which? stated suppliers are permitted to take so long as six months to finish a switch request.

Some members of its Which? Join on-line analysis panel stated that they had finally given up on the method because of this.

Which? stated with pensions dashboards being developed, which is able to make it simpler for folks to see all their pensions in a single place, extra persons are prone to be participating with their retirement plans.

Which? stated it's involved the present system is “not match for objective”.

The buyer group stated in a single case, a 61-year-old man determined to consolidate three pension pots to make them simpler to handle. Whereas two of the transfers have been accomplished inside a number of months, the third took 15 months to resolve.

In the course of the wait, he began to query the security of his financial savings, telling Which?: “You do hear about pension scams, so it crossed my thoughts as issues began to tug on.”

<img src="https://static.independent.co.uk/2026/01/28/11/57/iStock-1351051540.jpeg" srcset="https://static.independent.co.uk/2026/01/28/11/57/iStock-1351051540.jpeg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/01/28/11/57/iStock-1351051540.jpeg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Which? said it is concerned the current system is “not fit for purpose”" class="sc-1mc30lb-0 ggpMaE"/> Which? stated it's involved the present system is “not match for objective” (Getty/iStock) When the switch lastly went by means of, he stated it was a “big reduction”.

A monetary adviser additionally advised Which? a few nine-month wait confronted by considered one of his purchasers.

Which? stated that generally, bottlenecks will be triggered because of antiquated processes, typically requiring “moist” ink signatures. Typically, anti-fraud warning flag techniques may also be utilized by companies to authentic requests, it added.

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Whereas flagging schemes serve an essential operate, flags can add friction for savers, the patron group stated.

The Monetary Conduct Authority (FCA) is proposing new measures to raised help non-advised customers making switch selections, which Which? believes ought to enable for a quicker general timeframe whereas making certain savers have the appropriate info at their disposal initially of the method.

The reforms will suggest a 10-day data-sharing deadline, clear side-by-side comparisons for brand spanking new and previous schemes, and an industry-wide acceptance of digital signatures.

The FCA advised Which? its evaluation discovered greater than 75 per cent of sampled companies accomplished pension transfers inside 10 days. It additionally said the brand new proposals would offer customers with “clearer, extra well timed and extra significant info when contemplating a switch”.

Jenny Ross, Which? Cash editor, stated: “It’s important the {industry} urgently will get to grips with the problems dealing with pension savers and ensures a constant service for these shifting their retirement pots.”