Origo data shows that average transfer times for defined contribution (DC) pensions are continuing to fall. The figures for the 12 months to the end of June 2024 record that average transfer times for all transfers reduced from 12.3 calendar days to 12 calendar days, which means they are down 14.2% over the past eighteen months, from January 2023.
The average time for simpler transfers, where the transferring company has more control over the process, have reduced by 18.3% over the same period, from 12 calendar days in January 2023 to 9.8 calendar days at the end of June 2024.
The Origo Transfer Service accounts for around 95% of all DC pension transfers in the UK market. The Origo Transfer Index is published quarterly and tracks the transfer times of 30 voluntary participants, including the biggest names in the industry. The 30 participants account for 92% of the pension transfers carried out through the Transfer Service, making the Index a reliable market indicator.
Anthony Rafferty, CEO, Origo says: “Our data shows that transfer times have been progressively falling over the past 18 months, which is good news for the industry and for the end consumer.
“As we approach the first anniversary of the implementation of the Consumer Duty rules, it is important that all companies review their processes with a view to ensuring consumers do not suffer detriment or foreseeable harm.
“These lie as much in the speed of service to the consumer as in any other area. We all want consumers to receive the best service, and it’s great to see the Origo Transfer Service helping to deliver faster transfers for everyone.
“In other processing areas – such as letters of authority – where overly long delays are being experienced by advisers, we have to look at where the pain points are, and make every effort to resolve them.”
