The government and regulators are facing renewed pressure to introduce a 10-day pension switch guarantee, including the launch of a public petition, after research from PensionBee revealed the extent of 'pension purgatory' for millions of savers.

In its second 10-day pension switch guarantee report, PensionBee found that nearly half (46 per cent) of consumers who've transferred a pension found the process difficult.

In addition, three in five (63 per cent) believed delays were "actively harming" their ability to manage their retirement savings, while almost half (45 per cent) supported a strict 10-day maximum timeframe – a limit already proven possible by leading providers.

The report also highlighted emotionally charged case studies where delays have triggered real distress for savers.

The firm said the findings "laid bare" a broken system, which enables pension transfers to be delayed by months, leaving consumers anxious, frustrated and unable to take control of their financial future.

It follows previous research, undertaken in partnership with the Lang Cat, which showed that while some firms are achieving switches in less than 10 days, others are taking more than 60 days, with the worst-performing firms taking an average of 66.4 days in 2024.

As a result, the report said that consumer appetite for reform was "overwhelming."

63 per cent support a legally mandated pension transfer timeframe, 69 per cent want fines for firms that miss the deadline, and 85 per cent believe their right to switch should be stated on annual pension statements.

The report concluded that the case for reform was clear - pension switching is now the second most difficult life admin task after moving house, yet unlike moving, it's becoming far more common.

It also said that while pension switching is a core function of a modern, efficient retirement system, the current process simply isn't fit for purpose.

To drive momentum for change, PensionBee will soon open a public petition urging the government to introduce a legally enforceable 10-day pension switch guarantee, calling on policymakers to act now, to enable consumers to take control of their retirement savings, and bring "pension transfers into the 21st century."

Specifically, PensionBee is calling for a legally enforceable 10-day pension switch guarantee, with meaningful penalties for delays, refreshed scam rules that work to target genuine risk of scams, as opposed to enabling barriers to legitimate transfers to regulated providers, and a joint taskforce between the Department for Work and Pensions (DWP), Financial Conduct Authority (FCA) and The Pensions Regulator (TPR) to oversee the implementation of the 10-day pension switch guarantee and reform of the consumer protection framework.

"Pension switching shouldn't be so arduous, said UK PensionBee chief business officer, Lisa Picardo.

"I've worked in this industry long enough to know it doesn't have to be this way," she continued.

Picardo explained that she's experienced firsthand both ends of the spectrum on pension transfers – one that took five months and another that took just six days.

"This isn't about technical barriers," she argued, "it's about willpower.

"If we're serious about building trust in pensions, we need to stop making people jump through hoops just to move their own money."

She added that pension transfers were "the gateway" to better pension engagement, which ultimately leads to better retirement outcomes, but right now, we're "slamming that gate shut."

"We need to evolve the UK pensions system into one that prioritises people, not paperwork and providers that fail to modernise."

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