Just 29 per cent of people have made a pension transfer in the past five years, according to research.
My Pension Expert found 33 per cent of people made a pension transfer without seeking independent financial advice.
Some 58 per cent said they would consider making a transfer if the process was simpler ,with 43 per cent saying they value convenience over performance when it came to their pensions.
The research also found that 30 per cent of respondents stated their pension provider would impose exit charges if they tried to transfer their pension.
Lily Megson, policy director at My Pensions Expert called the UK’s pension transfers system ‘warped’.
She said: “This research demonstrates that UK consumers are deterred from making pension transfers by the slow, complicated and opaque processes involved, as well as concerns about the fees that could be charged.
"The result is that millions of people are left with pension pots that aren’t working hard enough for them, opting for the convenience of staying with their current provider rather than considering transferring to a more suitable option.
“This is an unacceptable situation for the industry, and action must be taken to rectify it. The only path to regaining customers’ trust is through greater transparency.
"It’s vital that it is easier and faster for people to transfer pensions between providers. For all the focus on the Mansion House reforms and wider tinkering with pension policy, we need the government to engage with this issue as a priority.”
This comes after the My Pension Expert’s annual Retirement Fairness Index found on average consumers had to wait 29 days for ceding companies to transfer their pension fund to a new provider in 2023.
alina.khan@ft.com
