Pension transfer times are at their lowest since the end of the pandemic in 2021, new data from the Origo Transfer Index shows, even as transfers volumes have continued to increase.
The Transfer Index draws its data from the Origo Transfer Service, which accounts for around 95% of all DC pension transfers in the UK market. Published quarterly, the Index tracks the transfer times of 30 voluntary participants, including the biggest names in the industry. They account for 92% of the pension transfers carried out through the Transfer Service, making the Index a reliable indicator for the market.
Data for the 12 months to the end of September 2024 shows that the average transfer time through the Origo Transfer Service was 11.9 calendar days. This is a decrease of 15% from the post pandemic high of 14 calendar days in January 2023.
Year on year comparison shows that average transfer times are down by close to 10% over the past three years (since October 2021).
The average time for simpler transfers, where the transferring company has more control over the process, has reduced by 17.5% in the same period, from a high of 12 calendar days in January 2023 to 9.9 calendar days at the end of September 2024.
Anthony Rafferty, CEO, Origo says: “Transfer volumes are up but transfer times are down, a combination which is fantastic news for the industry and consumers.
“Our data shows that average pension transfer times are continuing to fall, in a period when the Origo Transfer Service is continuing to handle year-on-year increases in transfer volumes.
“The Origo Transfer Service completed over 1.2 million defined contribution pensions transfers in 2023, up over 22% on 2022. The latest data reveals that we are on track for a similar increase in 2024, with year-on-year comparison to the end of September 2024 showing a 21.5% increase in volume on the same period in 2023.
“So even as the number of transfers have gone up, the Index shows that on average consumers are seeing their pensions transfers being carried out well within two calendar weeks.
“This illustrates how technology can keep improving efficiencies for the industry and help deliver better turn-around times for the end consumer.”
