Why are pension transfers still so painful?

Moving your money to a new provider can result in lower costs and, ultimately, less admin. However, the process itself can be more of an ordeal than you might expect, with some pension transfers stretching into weeks, months, or – in extreme cases – years.

In our recent survey, three in ten respondents told Which? that the process of transferring their pensions was either difficult or fairly difficult, and one in 10 said they eventually gave up on the process. 

This problem isn’t new: the Financial Conduct Authority (FCA) flagged pension transfer delays as an issue back in 2015. 

More than a decade on from that initial warning, we’ve spoken to industry insiders and gathered experiences from those who have moved their pension, to find out what’s going wrong – and what can be done to improve the system.  

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Pension transfers on the rise

With many of us building up multiple pensions as we change jobs throughout our careers, bringing these pots together in a single scheme can make it much easier to manage our money. 

Around 1.7m pension transfers took place in 2025, according to data from the electronic pension transfer service Origo – that’s 13% more than in 2024. 

This number is expected to rise even further when pensions dashboards are introduced towards the end of 2026. These online portals will enable savers to see all their pensions in one place, making it easier to keep tabs on savings. 

In theory, the process of moving your pension is simple: you fill out an application with the provider you want to move to, and it will take care of the transfer. But this won’t necessarily happen promptly – under the Pension Schemes Act 1993, providers are allowed up to six months to complete a transfer request.

In our recent survey, three in 10 people who have made a pension transfer said it took up to a month, a further two in 10 said it took up to three months, while one in 10 said it took six months. 

• Find out more: questions to ask before transferring your pension

What’s going wrong?

Pension transfer delays can have serious financial and emotional consequences for savers: you could miss out on potential investment growth, pay unnecessary fees and have your retirement timeline disrupted. 

Which? member Kirsty had already stopped working when she initiated her pension transfer, but told us she felt like she ‘hadn’t fully retired’ because of the stress she felt during the months-long wait for it to be completed.

In May 2025, pensions consolidator PensionBee launched its ‘End Pension Purgatory’ campaign, highlighting ‘severe’ inefficiencies in pension transfers. 

Lisa Picardo, chief business officer at PensionBee, told us the system was ‘broken’ but ‘capable of being fixed’, blaming outdated legislation, a lack of consistent standards and accountability, and an ‘unwillingness among firms to modernise’.

There are two systems currently in place for tracking transfer times – Origo and STAR. The STAR initiative is a voluntary system for tracking transfer speeds, while Origo is the commercial platform many providers use for electronic transfers. Because not all firms are required to report their data through these systems, it can sometimes be difficult to build a transparent picture of exactly how long transfers take.

• Find out more: how much will you need to retire?

Case study

'The delay affected my mental health'

Following his Parkinson’s diagnosis, John, 61, from Fife was forced into early retirement. He decided to consolidate three of his pensions to make them easier to manage. Two transfers were completed within a few months, but the third took 15 months to resolve. 

Initially, John was told that the firm had to disinvest money from his main fund – a standard practice in defined contribution pension transfers – and this is what caused the delays. 

After six months, John became concerned. He said: ‘I was worrying a lot about what was going on. It affected my sleep. It occupied my headspace, and was always on my subconscious. Looking back, it really did affect my mental health.’ 

The lack of communication around the timeframe caused John to question the safety of his savings: ‘You do hear about pension scams, so it crossed my mind until things started to drag on.’ This stress was compounded by a triple heart bypass during the wait. 

When the transfer finally finished, John felt a ‘huge relief’. After complaining, John received compensation for the delay but felt there was ‘no acknowledgement’ of the ‘discontent and distress’ caused. 

No incentive for firms to improve

Lisa Picardo from PensionBee argues that the longstanding six-month deadline ‘enables industry mediocrity’ and gives firms no incentive to improve – even though digital firms prove that swift transfers are possible.

PensionBee’s data shows that digital transfers into its own system are often completed within 10 days, whereas paper-based versions can take months. 

Similarly, Origo found that electronic transfers averaged 10.7 days in late 2025. Origo and Star agree that manual processes create bottlenecks, and our own survey identified slow responses and excessive paperwork as the top causes of delays. 

PensionBee notes that many large firms still rely on ‘wet’ (ink) signatures and postal correspondence as if the ‘internet never happened’. 

Firms are moving to a more digitised system, although full automation could take a decade. In 2026, Star will start collecting full data on both manual and electronic transfers, which it hopes will encourage firms to do better. Origo suggests fixing this by re-engineering the paper-based process to remove unnecessary steps.

• Find out more: how to plan for retirement

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Scam checks and 'sludge practices'

The Pension Schemes Act 2021 introduced a warning flag system to help protect savers from pension transfer scams. It means that a transfer will be stopped immediately if there is a high risk or ‘red flag’ (for example, the transfer was made after a cold call), while an amber flag pauses the transfer and requires the saver to have a meeting with MoneyHelper – a free, government-backed service.

While scam protection is vital, critics argue that the current system for identifying risky transfers is being misapplied to delay legitimate ones. This is known in the industry as a ‘sludge practice’. PensionBee describes the flags as a ‘smokescreen’ for slow service. 

Andrew Marker, chair of Star, says the anti-scam checks are ‘open to interpretation’, which can vary widely. Star is now working to standardise these checks. However, Lisa Picardo said the rules themselves should be updated and not just better implemented. 

The FCA does defend certain transfer delays, citing that providers must make the necessary checks to protect consumers from scams. 

However, Margaret Snowdon OBE, chair of the Retirement Income Taskforce for the Consumer Duty Alliance, argues that while security is vital, it cannot be an excuse, and backs the call for industry-wide automation and standardisation.

• Find out more: ways to access your pension

Case study

‘Delays leave everyone worse off’

John Helfgott warns that chronic pension transfer delays are increasingly leaving independent financial advisers like him caught in the crossfire. John says a client he had known for years waited more than nine months for his transfer to complete, and called constantly for updates that John couldn’t provide. 

Eventually, the client’s children feared their father was being scammed by John and told him to report it to the police. Although the transfer was completed before it came to that, the impact was significant. 

‘The delay caused a huge amount of unrest for the client,’ John said. ‘He was very, very frustrated and angry – and rightly so. I can’t imagine how he felt when his family said he could be being scammed by me.’ John says these delays are ‘deeply embarrassing’ and undermine the trust advisers build with clients. 

He added: ‘We can apologise and explain the turnaround times as much as possible, but we don’t have a magic wand to make things move faster. Clients understandably become unhappy and, unfortunately, that frustration is sometimes directed at us.’

What's being done to improve things?

The FCA is proposing new measures from April 2026 to better support consumers making transfer decisions. Which? believes this should allow for a faster overall timeframe while ensuring savers have the right information at the start of the process.

The reforms will mandate a 10-day data-sharing deadline, clear side-by-side comparisons for new and old schemes, and an industry-wide acceptance of digital signatures to accelerate pension transfer speeds. The FCA notes that these rules add a step to the decision-making process but argues they won’t delay the transfer once you’ve applied. 

The FCA told Which? that its reviews found that more than 75% of sampled firms completed pension transfers within 10 days. It also stated that the new proposals would provide consumers with ‘clearer, more timely and more meaningful information when considering a transfer’.

• Find out more: how to get pension advice and guidance

How the pension transfer process works

Here’s what the different stages should look like, according to The Consumer Duty Alliance’s Retirement Income Taskforce:

Do your research

Compare schemes to ensure they meet your needs. If unsure, seek advice. If you’re looking to transfer a defined benefit (DB) pension worth £30,000 or more, you’re required by law to get advice. The FCA believes it’s in most people’s interests to keep their DB pension, as moving to a defined contribution scheme means giving up a guaranteed lifetime income.

Start your transfer

Request a statement of your pension transfer value from your current provider. Next, apply to your new provider to start the move. It will guide you through and request any paperwork needed. 

Once submitted, timing depends on your pension type (personal pensions move quickly, but complex workplace or defined benefit schemes take longer), but providers must perform safety checks. 

To avoid delays, complete forms accurately and promptly. Stay in touch with both providers to track progress. If transfers exceed three months without reason, this may justify you making a complaint.

Wait for notification 

You’ll be notified once your transfer is complete. You should then review statements from your new pension account to ensure they’re correct. You usually have 30 days to cancel the transfer, but your previous provider might refuse to take it back, and if the value drops, you could get less back.

Our research: In October 2025, Which? surveyed 1,360 members of the Which? Connect panel online. 101 of them had transferred their pension in the past three years.