- Consumer group Which? says that lengthy delays in pension transfers are causing some savers to abandon the process.
- While transferring pensions can offer benefits like lower fees, providers are permitted to take up to six months, with some cases extending to 15 months.
- These delays lead to concerns among savers about the safety of their funds and are often caused by antiquated processes requiring 'wet' signatures or overzealous anti-fraud flags, the group said.
- Which? expressed concern that the current system is “not fit for purpose”, especially with the upcoming pensions dashboards expected to increase engagement.
- The Financial Conduct Authority (FCA) is proposing reforms, including a 10-day data-sharing deadline and digital signatures, to streamline transfers, despite claiming most firms already meet a 10-day target.
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