Pension transfers: Sluggish providers holding up your money
Some UK pension providers and administrators are taking eighteen times longer to transfer retirement savings than their counterparts, leaving savers waiting months for their money to be moved.
The fastest transfers took just five days, while the slowest took between a staggering 47 to 90 days, according to the latest analysis from Pension Bee.
Some of the most sluggish providers included Cushon Master Trust and Creative Pension Trust, which was recently acquired by WTW from Natwest, alongside XPS Administration, LGPS and Capita.
Overall the industry average transfer time remained broadly unchanged at 23 days in 2025, up from 21 days the prior, primarily driven by the top 20 providers or administrations either improving or holding steady on their transfer times.
Bottom of the table
While overall timings have remained steady, delays at the bottom end accelerated, with companies regulated by The Pensions Regulator rather than the Financial Conduct Authority the most likely culprits.
Providers who use third-party administrators who are not caught in the net of either regulator or do not use electronic transfer platforms were also found to be among the slowest.
Shining a light
The findings follow a report from a coalition of firms, including Pension Bee, Moneybox and Hargreaves Lansdown, calling out the archaic pension transfer system and the use of ‘sludge practices’ by some legacy providers.
Sludge practices are deliberate or excessive frictions, such as requiring signatures on paper forms, to delay clients transferring money.
The practices create a fractured market, shutting out pension savers who do not have access to digital platforms, such as self-employed people and those without workplace schemes, from faster transfer times.
Pension Bee and other firms are now calling on the government to “fix the issue once and for all” and lead the pension system to keep pace with modern consumer expectations and the wider financial market.
Lisa Picardo, chief business officer UK at Pension Bee, said: “Whilst we’re encouraged to see more firms embracing digital and delivering real improvements, the progress is mixed. The providers languishing at the bottom of the table may be failing to invest and modernise, adopting ‘sludge practices’ that serve as a blocker for consumers seeking to engage, or a combination of both.
“Ultimately, this is savers’ money, and their experience of transferring their pensions should not depend on a lottery of which ceding provider or administrator manages their pot.
“The processes, infrastructure and technology already exist to support smooth and efficient transfers – but the legislation now needs to work harder to give firms that are failing to respect consumer rights the impetus they need to finally raise their game.”