The UK has a “pension fragmentation crisis”, PensionBee’s chief business officer has said.
Lisa Picardo, chief business officer of PensionBee, was commenting on a report from the Pensions Data Project: ‘Pensions Savings in UK Master Trusts’.
“This report exposes the true scale of Britain’s pension fragmentation crisis,” she said.
“With over 3.5m people holding multiple pots across just five workplace pension providers, we’re looking at billions trapped in a slow, outdated system.
“The slow, cumbersome transfer process is the elephant in the room: consumers can switch their bank account in seven days, yet pension transfers regularly drag on for months.
She said that PensionBee research shows nearly half of those who have transferred a pension described the process as ‘difficult’.
“This isn’t just inconvenient – it’s fundamentally unfair and actively discourages people from consolidating their savings,” she added.
