25th May 2016
Hargreaves Lansdown has called on the government to introduce legislation requiring pension transfers in 7 days in the Better Markets Bill. The firm points out that the bill will require a 7 day switch for mortgage holders and suggests that pensions are brought into line.
Tom McPhail, head of retirement policy: “The focus should be on putting the investor at the heart of the pension system. We have written to the Business Secretary Sajid Javid and the Economic Secretary to the Treasury Harriett Baldwin, asking them to consider extended the provisions of the Better Markets Bill to encompass a requirement for pension providers to comply with a 7 day switch deadline. What’s good for banking and mortgages would be just as relevant for pensions.”
“Some pension providers, especially occupational schemes have not invested sufficiently in the electronic systems and processes necessary to serve their customers and members well. This is a problem which reflects the broader failings of pension governance. Investors have a right to expect all pension providers to deliver a modern, efficient service. Average transfer times have improved enormously however there are still too many unnecessary and unacceptable delays. The uncertainty this causes deters investors from taking control of their retirement savings. In the end this means less competitive pressure, less investor engagement and poorer retirement incomes.”