Average defined contribution (DC) pension transfer times have fallen by 18% over the last 18 months, according to new data released by fintech company Origo.
The figures for the 12 months to the end of June 2024 show average transfer times for all transfers reduced from 12.3 calendar days to 12 calendar days.
This means they are down 14.2% over the past 18 months, from January 2023.
The average time for simpler transfers, where the transferring company has more control over the process, has 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.
These 30 participants account for 92% of the pension transfers carried out through the Transfer Service, making the Index a reliable market indicator.
Origo CEO Anthony Rafferty said: “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.”
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