Is it worthwhile to move your retirement funds since pension transfers are taking longer?

The wait for reduced fees and less paperwork may be worth it, even though pension transfer times have lengthened over the past year

While combining previous pension funds can be a good way to manage your retirement funds in one location, many savers are having to wait a long time to do so.

Although automatic enrollment may have increased the number of people with workplace pension plans, it also makes it simple for employees to access multiple retirement savings accounts when they change jobs.

Combining them can help you track performance in one location and save money on fees.

However, Origo's analysis has shown that combining pots is taking longer.

Transfer times have slightly increased over the past year, according to Origo's most recent pension transfer index.

The average time to transfer a pension was 12:05 days in 2023, but in 2024 - 2025, it was 12:07 days.

Although the number has decreased from 14 days in 2022, some providers are still taking up to 31 days.

This could entail missing out on investment gains if you intended to move into other investments or paying high fees to a more expensive provider for a longer period of time.

PensionBee's director of public affairs, Becky OConnor, recommends a 10-day pension switch guarantee.

This timeline is consistent with the Financial Ombudsman Service's previous independent enforcement efforts. A change of this kind is essential to restoring public confidence in the pension system and giving consumers more control over their financial future.

"Consumers should have the same switching rights as those found in other markets, as well as an effective pension transfer procedure and the ability to complain to the Ombudsman.

How long does it take to transfer a pension?

Long wait times for pension transfers have been a concern of the Financial Conduct Authority since 2015.

Because transfers involve moving money invested in the stock market, they can take some time, and there may be problems if your new provider does not offer the same funds or shares.

Additionally, the technology used by the providers determines whether the transfers are completed electronically or by paper forms that require signatures.

Additionally, providers may be concerned about consumers falling victim to fraud and will want to confirm that the transfer is authentic.

According to Origo's most recent transfer time data, Forester Life was the provider that processed requests the quickest last year, completing them on average in 3 to 9 days, which was only a little faster than MetLife's 5 to 3 days.

12 days was the average transfer time for PensionBees.

Vanguard took 26 to 7 days on average, while People's Partnership was the slowest provider, taking an average of 31 to 4 days.

Are you considering transferring your pension?

The Treasury estimates that the typical employee accumulates ten pension funds over the course of their career.

In addition to numerous logins and passwords to remember, that can be a lot of pension plans to monitor.

A request for evidence regarding the creation of a life pension that follows a worker when they change jobs has been made by the Treasury.

The primary choice for the time being, however, is to either have several pots or combine your pensions so that you can manage them all in one location.

To achieve this, many savers pool their previous pension funds into a self-invested personal pension, which they then oversee in addition to their current work plan.

If you are able to obtain reduced fees and a greater selection of investments, combining or consolidating your pension could result in financial savings.

Additionally, it lessens the amount of paperwork involved in pension administration.

Transferring your pension might not always be worthwhile, though, as you might lose important benefits like guaranteed annuity rates. Instead, you might want to have a financial advisor review your paperwork.

If the transfer value exceeds £30,000, savers with defined benefit pensions, such as those in final salary plans, must seek financial advice.

If you have a more popular defined contribution plan, you are not required to do this, but it might be helpful to know the costs, potential tax ramifications, and advantages and disadvantages.