Simpler pension transfers took an average of 10.5 days to complete in 2024, the latest Origo data reveals.
This relates to a company’s performance when they have more control over the process for relatively straightforward pension assets moving away from their business.
Around 1.5m transfers completed in 2024 worth approximately £66.7bn. This was up from 1.2m transfers in 2023 worth £52.4bn and just over one million transfers in 2022 with a value of £42bn.
The overall average pension transfer figure in 2024 – allowing for slightly more complex transfers where providers may need to rely on third parties for additional information – came in at 12.3 days.
Origo’s Transfer Index tracks the pension transfer times of almost 30 voluntary participants, including most of the big names in the industry.
The transfer service provided by Origo accounts for around 80% of all Defined Contribution pension transfers in the UK market. Those firms which publish their transfer times as part of the index make up 90% of all completed transfers in the 12-month period from 1 January 2024 to 31 December 2024.
Performance is measured on how long it takes the ceding provider to transfer the request, including any due diligence and divestment of funds before sending the customer’s money to the acquiring provider.
Total transfers and transfer values have increased year-on-year as the average transfer time continues to fall.
In 2024, around half of all transfers completed in just under seven working days, while for the providers opted in to share their data for the index it was 6.7 days.
Back in January 2023, overall transfer times were at a post-pandemic high of 14 calendar days, while simpler transfers took 12 days on average to complete.
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 £66.7bn 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.
“There used to be a fair amount of concern that ceding providers might try to hold on to funds for as long as possible and this could impact transfer times, but our data shows that’s not 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.”
