Pensions  

Make efficient pension transfers a priority: Origo

The managing director of Origo said: “The fast and efficient transfer of pension pots and assets is a growing issue for the pensions industry as pot-follows-member plans are developed and volumes increase under auto-enrolment rules.”

To date, the Department for Work and Pensions has focused largely on the sign-up process for auto enrolment.

However, Mr Pettitt said it was inevitable that the ability to transfer pensions securely, quickly and efficiently for the benefit of consumers would become a key industry focus.

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He added: “The industry needs to have confidence in its technology services that ultimately affect the service provided to the UK’s pensions savers and annuity purchasers.”

Key figures

46% of single pension pots transferred to annuities in 2013 using Origo’s options transfers service were valued at less than £20,000

24% of single pots transferred were less than £10,000, 11% less than £5,000 and 80% less than £50,000

Origo’s options transfers service processes around 95% of the industry’s pension to annuity open market options transfers

Adviser view

Malcolm Southern, director of Lanarkshire-based Southern Financial Services, has warned on several occasions that providers may end up switching off new business due to over capacity with auto-enrolment pensions. He said: “Some providers are giving a lot of support to the advisory community, but there are a lot of providers reaching over capacity.”