{"id":632392,"date":"2026-06-11T04:07:27","date_gmt":"2026-06-11T04:07:27","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/632392\/"},"modified":"2026-06-11T04:07:27","modified_gmt":"2026-06-11T04:07:27","slug":"the-new-pension-transfer-hurdle-that-could-delay-savers-moving-their-money","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/632392\/","title":{"rendered":"The new pension transfer hurdle that could delay savers moving their money"},"content":{"rendered":"

Savers trying to move their pension<\/a> to a new provider could face extra paperwork that may add weeks of delays to the transfer process, causing more problems for people looking to move their retirement funds.<\/p>\n

Under proposals set out by watchdog the Financial Conduct Authority (FCA), in December, the pension firm a saver<\/a> is leaving would have 10 working days to send a pack of information to the new provider chosen by the customer.<\/p>\n

The new company would then have three working days to pass this information on to the saver before the transfer could continue.<\/p>\n

The aim of the proposals is to make it easier for savers to compare schemes before they move their money.<\/p>\n

However, the FCA is reportedly concerned that some savers are transferring pensions without properly considering whether they could face higher fees, lose useful features or end up with investment options that are less suitable for them.<\/p>\n

It is also worried that some customers are being encouraged to switch for reasons that may not be in their best interests, such as cashback or other financial incentives. <\/p>\n

Over the past few months, the pensions industry has argued strongly against the plans, saying that they risk adding more friction and delays to a process that many customers already find too difficult. AJ Bell published an open letter<\/a> arguing the plans are \u2018anti-consumer\u2019.<\/p>\n

The row comes as the Government is trying to encourage savers to engage more with their retirement<\/a> savings. Critics warn that adding more friction to pension transfers could undermine efforts to get people to take control of their finances.<\/p>\n

Alex Campbell, director at investment platform Freetrade, told The i Paper: \u201cThe proposed changes to pension transfers appear to take little heed of the needs of consumers who have decided to actually engage with their pensions, and risk putting them off doing so entirely.\u201d<\/p>\n

One major concern is that the proposals would not apply evenly across the pensions market.<\/p>\n

FCA rules generally cover personal pensions \u2013 where you set a scheme up yourself \u2013 while occupational workplace schemes \u2013 ones you join through employment \u2013 are overseen by The Pensions Regulator (TPR).<\/p>\n

Experts say this could create a two-tier system, where some firms involved in a pension transfer would have to meet the FCA\u2019s proposed deadlines, while others would not.<\/p>\n

For example, a TPR-regulated scheme would not have to adhere to the FCA\u2019s proposed timeframes, which experts say could leave customers facing longer waits and not getting information in a consistent format.<\/p>\n

Michael Summersgill, chief executive of AJ Bell, said: \u201cThese proposals will only apply to pensions regulated by the FCA, meaning the proposed 10-day time limit for firms to provide the information needed will not apply to workplace pension schemes that don\u2019t come under the FCA\u2019s remit.<\/p>\n

\u201cIronically, this is where some of the worst offenders when it comes to slow pension transfer times reside.\u201d<\/p>\n

The proposals have alarmed providers because pension transfers are already prone to delays, with customers often facing burdensome paperwork and inconsistent processes between firms.<\/p>\n

\"VictoriaVictoria Leyton said that transferring her pension was a difficult task and was made to feel bigger than it needed to be<\/p>\n

Victoria Leyton, 40, from Sheffield, tried to get a better overview of her pension savings last year by transferring all her old pots into one scheme, allowing her to view everything in one place.<\/p>\n

But the transfers were held up for months when two of her providers, Fidelity and Nest, asked her to post her passport to confirm her identity before they would move her money, which almost put her off transferring.<\/p>\n

Ms Leyton said: \u201cI had to prove who I was to move my pension by sending them photo ID, which seemed like prohibitive admin.<\/p>\n

\u201cI am time-poor, managing my day job and a side hustle, so the idea of doing what should have been a small task felt huge. It added such unnecessary delays. This process needs to be easier, not harder.\u201d<\/p>\n

Industry critics argue that the FCA is right to want savers to understand what they are doing before they transfer, but wrong to intervene at the point where a customer has already made a decision to move.<\/p>\n

They say customers should be given clear information earlier in the process, rather than having every transfer delayed once it is already underway.<\/p>\n

Another key concern is that the FCA\u2019s plans were partly shaped by findings from its Financial Lives survey \u2013 research that looks at how people engage with their finances. But some firms argue the evidence is not strong enough to justify a broad intervention across the pension transfer market.<\/p>\n

The FCA may look to soften its initial proposals after the majority of firms opposed the plans in their current form, though it is still expected to intervene in some way.<\/p>\n

It is also understood to be preparing to test the effectiveness of its current proposals and will use the evidence, alongside feedback from the industry, to inform its final rules. Providers are encouraged to suggest alternative approaches.<\/p>\n

One insider, who works at a personal pension provider, said: \u201cThe FCA keeps saying \u2018we hear your concerns\u2019, but it does still seem keen to do something around this issue. Providers are telling it to focus on getting firms to provide information on request, rather than inserting it into the transfer process like this.\u201d<\/p>\n

Brian Byrnes, director of personal finance at Moneybox, said: \u201cWe support the FCA\u2019s objective to empower pension customers to make more informed decisions. But the timing of when this information is provided is critical.<\/p>\n

\u201cRequiring all pension transfers to be delayed by [at least] 10 working days is disproportionate, particularly when the customer has already made a clear decision to transfer.<\/p>\n

\u201cThis is especially concerning given the pension transfer system already experiences significant friction and delays.\u201d<\/p>\n

How to transfer your pension<\/p>\n

If you want to transfer or combine your pensions, you first need to choose a new pension provider. Comparison websites such as Money.co.uk can help you compare charges and features, although they may not cover the whole market.<\/p>\n

Before transferring, check whether your existing pension has any exit fees, guarantees or other valuable benefits you could lose by moving.<\/p>\n

Next, track down your old pensions using paperwork from previous schemes, such as joining letters or annual investment updates. Ask each provider how much you have saved, what charges you are paying, and whether there are any penalties or benefits attached to the policy.<\/p>\n

If you can\u2019t remember where your pensions are, the Government\u2019s Pension Tracing Service can help you find contact details for workplace or personal pension schemes. You can also contact old employers\u2019 HR departments for details.<\/p>\n

Once you have found your old pots, give your new provider the details. In many cases, it will contact your old providers and arrange the transfer.<\/p>\n","protected":false},"excerpt":{"rendered":"Savers trying to move their pension to a new provider could face extra paperwork that may add weeks…\n","protected":false},"author":2,"featured_media":632393,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,1447,4178,4174,4175,4204,56,54,55],"class_list":["post-632392","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-pensioners","tag-pensions","tag-personal-finance","tag-personalfinance","tag-retirement","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/632392","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=632392"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/632392\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/632393"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=632392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=632392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=632392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}