Life and pensions consolidator Re-Assure is the latest company to join the Origo Transfer Index (OTI).
The OTI currently consists of 27 leading providers who voluntarily publish their transfer times through the Index, contributing to transparency of data in the industry and improving customer outcomes by providing an industry benchmark for average times taken to cede a pension (i.e. transfer a pension to another provider) against which companies can compare their own transfer performance.
Data for the 12 months to 31 March 2021, for transfers made through the Origo Transfer Service, show the transfer time across OTI participants was an average of 9.2 days for simple transfers (i.e. those where the ceding provider has complete control over the ceding process) and 11.7 days for overall transfers (where the provider may or may not have control over the entire process).
Origo Transfer Service data shows that the majority of pensions across the service as a whole are being transferred between the ages of 50 and 60, with another peak at 65 and a smaller peak at age 75. The average transfer value across all transfers was £43,051.
The value of the average transfer rises year on year, peaking at age 82 but dips at the key ages of 55, 60, 65 and 75, where greater numbers of transfers take place, marginally depressing the average value at those points.
Pension to annuity transfers follow the same five-year pattern but are highest at ages 65 and 66, with an average transfer value of £48,508.
Commenting, Anthony Rafferty, CEO Origo, says: “We are delighted that a provider of the profile of Re-Assure has chosen to participate in the Origo Transfer Index, emphasising the importance for the industry of providing greater transparency around all transfers of customer assets, which can only help to drive up efficiencies and in so doing improve outcomes for consumers.
“This is an important area which is under close scrutiny of government and regulators and we hope more providers will come onboard with the OTI and publish their data.
“Over the past year the Origo Transfers Service has undertaken close to 800,000 pension transfers, with the peaks in transfer occurring, as might be expected, at ages 55, 60, 65 and 75. The highest number of pension-to-pension transfers, where pension members may be looking to transfer to cash in their pension, to switch provider or to a drawdown product, were made between the ages of 50 and 60, with nearly £15.2bn being transferred. The peak age for pension-to-pension transfers was 55, with £2.27bn being transferred through the service at that age.
“While this quarter’s report shows a rise in the average transfer time from Q1 for both simple and overall transfers, these are calendar not working days and on average pensions transfers for OTI participants remain well within two calendar weeks.”
“The Origo Transfer Service now serves over 150 brands and automates the vast majority of DC pension transfers in the market.”