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Pension transfer times have reached their lowest level since the end of the pandemic in 2021, despite a continuous rise in transfer volumes, data from the OrigoTransfer Index has found.
The Origo Transfer Index, based on data from the Origo Transfer Service, reported that the average transfer time through the service was 11.9 calendar days in the 12 months leading up to the end of September 2024.
This represents a 15 per cent decline from the post pandemic peak of 12 calendar days recorded in January 2023. In addition, a year-on-year comparison revealed that average transfer times have decreased by nearly 10 per cent since October 2021.
The data also indicated that the average time for simpler transfers – where the transferring company has greater control over the process – has reduced by 17.5 per cent in the same period, from a high of 12 calendar days in January 2023 to 9.9 calendar days at the end of September 2024.
This decline in transfer time comes even though transfer volumes have increased. The service processed over 1.2 million DC pension transfers in 2023, which represents an increase of 22 per cent from 2022.
This trend is expected to continue, as a year-on-year comparison at the end of September 2024 indicated a 21.5 per cent increase in volume compared to the same period in 2023.
Origo CEO, Anthony Rafferty, said: “Transfer volumes are up but transfer times are down, a combination which is fantastic news for the industry and consumers,”
“This illustrates how technology can keep improving efficiencies for the industry and help deliver better turn-around times for the end consumer.”
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