ABI's Options transfer time slows from 8 to 11 days
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The Q2 2009 performance report shows that 9,448 transfers were processed between April 1 and June 30 with an average weighted transfer time of 11.1 calendar days. This figure was 7.7 days in Q1.
ABI director of life and savings Maggie Craig says: "Although there has been a slight increase in the average transfer time, this should not detract from the efforts of pension companies to improve performance on Omo transfers.
"It is still early days for Options. It was always expected that average transfer times would fluctuate. The good news is in just one year, average transfer times have fallen by nearly three weeks."
The industry average for transfers in 2008 was 31 calendar days, according to the ABI.
Hargreaves Lansdown pensions analyst Nigel Callaghan says: "Options is really working to make the retirement process for many investors far less painful. Information is being sent and acted upon much quicker and is far less likely to be lost in transit.
"It is disappointing the average turnaround time has slipped by 40 per cent and some of the worst offenders dragging down the average are major pension companies.
"It would be reassuring to learn what action is being taken to get these turnaround times back down again and which pension companies are signing up in Q3."
The Retirement Adviser head of retirement planning Nick Flynn says: “While it has increased, the turnaround time is still impressive and a big step on from where we were. But we must get further providers on board and all providers must support all product categories.”
Fourteen providers are using Options for Omo and IVPP transfers. The ABI has again called for companies that have not yet signed up to the initiative, or gone live, to do so as soon as possible.
Zurich and Scottish Widows remain the only providers of the 16 involved not to go live, despite the fact Options kicked-off in early December. Zurich is expected to go live this quarter but Scottish Widows has not set a timeframe.
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