Eight of the UK’s largest pension master trusts have formed a new industry group in an effort to modernise a transfer system widely criticised for being too slow, too fragmented and too dependent on outdated processes. The coalition, known as Pathfinder, includes Nest, Smart Pension, People’s Pension and Now:Pensions, and together they oversee more than £162.7bn for 14.5 million savers.

Focus on reducing friction and improving security

According to the participating trusts, the group will look at how pension transfer infrastructure can be brought up to date, with a particular focus on smoother validation, common data standards and less friction for members moving pots between providers. The aim is not simply speed for its own sake: Gavin Perera-Betts, Nest’s chief customer officer, said member outcomes, fraud prevention and protection from unauthorised access must remain central to any reform.

Transfer delays remain a persistent problem

The initiative arrives as the industry braces for a sharp rise in transfer activity. PensionBee analysis has shown that some providers take many times longer than others to complete transfers, with the slowest cases stretching to 47 to 90 days compared with as little as five days at the fastest end of the market. The average transfer time has stayed broadly unchanged at 23 days, but the laggards have become even slower, while some firms have also been accused of using so-called sludge practices, such as paper-based signatures, to make transfers harder.

Dashboards and consolidation set to increase demand

Pathfinder is also preparing for the expected effect of pensions dashboards and small-pot consolidation. Industry estimates suggest dashboards could trigger the consolidation of more than 13 million small pots worth £1,000 or less, increasing pressure on an already stretched system. Related industry reporting says transfer volumes are expected to more than double, with small pots forecast to reach 17.5 million by 2030, making better pre-transfer checks and more scalable processes increasingly important.

Industry seeks a more efficient future system

Angela Staral, chief operating officer at People’s Pension, said transferring a pension is not the same as switching a bank account because the decisions involved can affect retirement income for years to come. Even so, she argued that once savers have made an informed choice, the mechanics should be as straightforward as possible. Industry publications say Pathfinder is inviting more master trusts to join, as the sector looks to adopt open, interoperable standards and earlier data checks to reduce rejections and delays.

Reward Strategy Says

The launch of the Pathfinder coalition highlights a growing industry focus on improving pension engagement and administration efficiency as pension transfer volumes are expected to rise significantly. The initiative aims to streamline transfer processes through better data standards, stronger validation checks and enhanced security, helping to reduce delays that can currently leave savers waiting weeks or even months for transfers to complete. With pensions dashboards and small-pot consolidation likely to increase member activity and expectations, employers and pension scheme stakeholders should monitor the effect closely, as more efficient transfer systems could improve member experience, support retirement outcomes and reduce administrative friction across workplace pension arrangements. But this isn’t just about your older generation workers. Improvements in pensions will resonate with the younger employees as the growth of mistrust around government pensions rises amongst them.