Average pensions times have improved over the last quarter, latest data from the Origo Transfer Index shows
The Index publishes the transfer times of a group of now 30 providers using the Origo Transfer Service. The latest data shows overall transfers times have reduced across the group to 12.9 calendar days, down from 13.6 calendar days in June. The overall figure includes transfers where a third party may be involved, such as where approval is required from trustees, and so the transfer is not fully in the provider’s control.
‘Simpler’ transfer times also have improved. The average time for the period was 10.6 calendar days, down from 11.5 calendar days in June. ‘Simpler’ transfers are those where the ceding provider has complete control over and can reasonably be held fully accountable for the entire transfer process.
Scottish Widows and Clerical Medical have joined the Index, bringing the number of participating providers to 30. Origo says the 30 providers accounted for 92% of all transfers completed through the Origo Transfer Service in the 12-month period to the end of September 2023, “providing a performance benchmark for the industry”.
Anthony Rafferty, CEO, Origo, says: “The Origo Transfer Service processes the vast majority of pensions transfers in the UK market and with 92% of transfers through the Service now accounted for in the Index, the data provides a reliable indicator of the performance of the overall transfer market, which as can be seen, has notably improved over the last quarter.
“All transfer times are under the Regulator’s scrutiny. Our data shows that within the pensions market, Origo’s digital processing is enabling simple pensions transfers to consistently complete in around 10 days. The pensions industry must now look to its outliers, who typically use slow, paper-based processes, with a view to bringing down pensions transfers times across the board.
“It is important for consumer outcomes that as an industry we continue to reduce transfer times whilst keeping security front of mind.”
Rafferty also pointed out that the 30 providers participating in the Origo Transfer Index, “publish their data voluntarily, and are doing so to create greater transparency on pensions transfers and to help improve performance across the industry overall. Data is published no matter what their performance and every provider should be commended for their involvement”.
The average performance times are provided in calendar days, measured from when funds are requested through to the time funds are actually sent. This includes processing of the transfer request, any due diligence, divestment of funds, etc, and the sending of the customer’s money. There will be complex cases and those involving third parties, where some of the transfer process may be out of the control of the provider. This can affect the average times. Likewise, many transfers go through far faster than the average – in a matter of minutes in some cases.
