Pension transfer delays are costing Brits considrable amounts of money just when they need it most. While some delays are normal, some are questionable and on the brink of abuse. That is why Pension Bee has reported pension providers to the Department of Work and Pensions, alleging pension transfer rules abuse.
Andrew Megson, executive chairman of My Pension Expert said he found PensionBee’s report shocking but comes as no surprise.
“Of course, some delays are necessary,” says Megson, “providers must conduct their due diligence to ensure the transfer in question is not fraudulent and advisers on consumers behalf are required to ensure, as they should to protect the consumer, that valuable pension benefits are not sacrificed.”
But he adds, “Needlessly prolonging these delays is costing innocent consumers dearly. Indeed, My Pension Expert has seen clients lose as much as £900 due to unnecessary transfer delays. We cannot allow this to continue.”
What can the FCA and DWP do to curb pension transfer delays?
Megson says the FCA, and indeed the DWP must outline a plan to clamp down on unnecessary transfer delays.
Conducting a thorough review of regulations regarding pension transfers and outlining how improvements can be made will be a strong start.
Megson says, “Providers must also ensure they have enough resources to process pension transfers and punishing those who are unnecessarily prolonging the process would be a real sign of intent.
“Causing permanent damage to Britons’ retirement finances at a time when the cost of living crisis is placing households in real financial hardship. In doing so, we will ensure that the financial services sector is truly putting the consumer first.”