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More people enjoying faster annuity transfers

More people enjoying faster annuity transfers

Category: Annuities

Updated: 27/10/2011
First Published: 13/07/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
More people are experiencing faster transfers than ever before when moving to a new pension or annuity provider, according to the Association of British Insurers (ABI).

Despite the addition of several new providers to the Origo Options service and a significant rise in the number of transfers it completes, the average time it currently takes to transfer an annuity to another provider using the so called open market option (OMO) has remained steady at 11 calendar days.

Pension transfers are currently taking 10 days, a slight improvement on the figure reported in the previous quarter.

Before the introduction of Options, an OMO transfer took on average 31 days from beginning to end, while pension transfers typically stretched over 36 days.

In order to get the best value for money from their pension pot, people approaching retirement should shop around to find the best annuity rates across the whole of the market, rather than simply choosing the annuity on offer from their pension provider.

Twenty providers are now signed up and using the service for annuity transfers, with Abbey Life and Windsor Life having joined in April, and Scottish Life in July.

Abbey Life, Friends Provident, AXA and Nucleus are the latest providers to join the service for pension transfers, bringing the total to 13.

"The initiative has handled major increases in volumes and participating providers with ease and, in the case of pension transfers, even delivered improvements on the previous quarter," said Maggie Craig, ABI Director of Life & Savings.

The twenty providers using Options for OMO transfers are Abbey Life, AEGON, Aviva, AXA, Canada Life, Co-operative Financial Services, Friends Provident, Just Retirement, Legal & General, LV=, MGM Advantage, Nucleus, Partnership, Phoenix Group, Prudential, Scottish Life, Scottish Widows, Skandia, Standard Life and Windsor Life.

The thirteen companies which are now live with the Options pension-to-pension transfer service are Abbey Life, AEGON, Aviva, AXA, Canada Life, Friends Provident, Legal & General, LV=, MetLife, Nucleus, Prudential, Skandia and Standard Life.

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