Suffolk Life have revealed that the average time taken for a simple transfer of money from one self invested personal pension (SIPP) provider to another is 36 weeks. They add that the quickest transfer into their SIPP product was 30 days and the longest took two-and-a-half years!
Imagine you want to invest in something via your pension but have to wait for the transfer to take place first – will you want to make the same investment decision 36 weeks, or years later? Investment decisions should not be ruined due to maladministration.
SIPPs can contain complex investments that may not be as liquid as the sort of funds you would find in most pensions so you would expect some delays but this is not an excuse that covers all scenarios. Even when a soon to be pensioner wants to transfer funds to another annuity provider from a simple pension other than a SIPP we find huge administrative delays.
I’ve written about the terrible pension administration delays before but I hope I’m not still writing about it in another year. More and more people are complaining so perhaps the FSA, which recently took action over the troubles in the financial markets, will take positive steps to improve performance in this area.