Pension Transfer Delays Exposed: Some Providers Take 90 Days to Move Funds
New analysis has uncovered significant disparities in pension transfer times across the UK, with some providers taking up to eighteen times longer than their counterparts to move retirement savings. This leaves savers waiting months for their money to be transferred between pension schemes.
The fastest pension transfers are completed in just five days, according to the latest data from Pension Bee. However, the slowest providers take between 47 and 90 days to process the same transactions, creating substantial delays for individuals seeking to manage their retirement funds.
Identifying the Slowest Performers
Among the most sluggish providers identified in the analysis were Cushon Master Trust and Creative Pension Trust. Creative Pension Trust was recently acquired by WTW from Natwest. Other slow-moving administrators included XPS Administration, LGPS, and Capita.
Overall, the industry average transfer time remained broadly unchanged at 23 days in 2025, up slightly from 21 days the previous year. This stability is primarily driven by the top 20 providers or administrators either improving or maintaining their transfer times.
The Bottom of the Table
While overall timings have remained steady, delays at the bottom end have accelerated significantly. Companies regulated by The Pensions Regulator rather than the Financial Conduct Authority were identified as the most likely culprits for these extended delays.
Providers who use third-party administrators that fall outside the regulatory net of either watchdog, or those that do not utilize electronic transfer platforms, were also found to be among the slowest performers in the pension transfer market.
Shining a Light on 'Sludge Practices'
The findings follow a report from a coalition of financial firms, including Pension Bee, Moneybox, and Hargreaves Lansdown, that called out the archaic pension transfer system and the use of 'sludge practices' by some legacy providers.
Sludge practices refer to deliberate or excessive frictions designed to delay clients from transferring their money. These can include requirements for signatures on paper forms, outdated verification processes, and other bureaucratic hurdles that slow down transactions.
These practices create a fractured market that particularly disadvantages pension savers without access to digital platforms. Self-employed individuals and those without workplace pension schemes are especially affected, as they are shut out from faster transfer times available through modern digital systems.
Calls for Systemic Reform
Pension Bee and other forward-thinking 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, commented: "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," Picardo emphasized.
She added: "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."
The analysis highlights an urgent need for regulatory intervention and industry-wide modernization to ensure all pension savers can transfer their retirement funds efficiently and without unnecessary delays that could impact their financial planning and security.
