PensionBee has urged the Government and regulators to overhaul what it describes as the UK’s “outdated and inconsistent” pension transfer system.
Its report, Faster, Fairer, Digital: The Pension Transfer Reset, argues that pension savers continue to face lengthy, confusing and often avoidable delays when trying to move their retirement pots.
While some providers complete transfers within days, others still rely on paper forms and manual processes, with some transfers taking months or even years.
PensionBee warns that inconsistent standards, legacy systems and what it terms “sludge tactics” are creating unnecessary friction for consumers.
The result, it says, is a system that can deter engagement and damage trust at a time when more people are consolidating pensions.
The report builds on PensionBee’s ongoing 10-Day Pension Switch Guarantee campaign and follows two previous publications in 2025.
Unlike earlier reports, which focused on diagnosing the problem, the latest version sets out five policy interventions aimed at delivering a modern, digital-first system.
The first is a proposed 10-day Pension Switch Guarantee, applying in all but the most complex cases.
PensionBee argues that current legislation and regulatory frameworks are no longer fit for purpose and require urgent reform if transfers are to be completed at a pace consistent with other financial services.
The report calls on the Government, the Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) to mandate digital transfers across all schemes, beginning with trust-based schemes within TPR’s remit.
Other recommendations include:
- compulsory publication of provider performance data;
- a reform of transfer-scam flag rules that PensionBee says are being misused to delay transfers;
- and a reduction of the statutory six-month transfer deadline, unchanged for more than three decades.
PensionBee argues that structural fragmentation is a major barrier to progress.
The report notes that FCA-regulated providers routinely complete digital transfers within days, while many trust-based schemes supervised by TPR remain slower, creating what it calls a “two-tier system”.
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With no universal service standards and no mechanism to hold providers accountable, consumers face a “lottery” depending on where their pension is held.
The report also points to wider momentum for reform.
More than 6,500 people have signed PensionBee’s public petition supporting a 10-Day Pension Switch Guarantee, ahead of a January 2026 deadline.
With the delayed Pensions Dashboard rollout and upcoming inheritance tax changes expected to prompt more pension consolidation, the firm warns that millions more savers could soon be affected by the same delays unless action is taken.
While acknowledging voluntary initiatives such as STAR, PensionBee concludes that these efforts lack enforceable requirements and have not secured universal participation.
It calls for the Department for Work and Pensions, the FCA and TPR to work together to introduce digital-first processes, mandatory standards and clearer rights for consumers.
Lisa Picardo, chief business officer UK at PensionBee, said the system is “broken, but capable of being fixed”.
“People quite rightly expect their pensions to work like every other part of their financial life – to be simple, efficient and digital,” she said.
“If you can move money between banks in seconds, there’s no excuse for pensions taking months.”
She added: “It’s now time for the Government and regulators to step in, set enforceable standards, and hold providers to account.”
