UK Pension Transfer Times Improve
UK Pension Transfer times in the UK have improved over the past year, with simpler UK Pension Transfers taking just seven calendar days.
The index showed that average times from point of request to transaction had fallen from 9.3 days in 2018/19, to 8.8 days for 2019/20.
Meanwhile simpler transfers had fallen from an average of 7.9 days in 2018/19.
The Financial Conduct Authority has UK pension transfer times at the forefront of it agenda including the Minister for Pensions and Financial Inclusion, who has urged providers to be transparent with their UK Pension transfer times and to work to lower them to provide a better service for consumers.
The average transfer times being achieved by participants overall is to be commended and is good news for individuals wishing to safely and quickly transfer their assets.
It was clarified that the service operates on a calender days rather than working days basis, also highlighting that participants in the Transfer index account for around 80% of the transfers made through the Transfer Service.
The Service automates the process for providers and has had a fundamental effect on reducing transfer times over the past 12 years.
The findings come as cash equivalent transfer activity is being put on hold by many schemes under new easements introduced by The Pensions Regulator earlier this month due to the Covid-19 pandemic, with industry experts predicting a slow down in risk transfer demand.
The Financial Conduct Authority has also published updated guidance for providers and Defined Benefit Uk Pension transfer advisers in light of the current crisis, also delaying the introduction of more stringent rules for pension transfer specialists until October 2021.