51% of savers cited some kind of difficulty with accessing support from their provider
Two fifths of savers have a bad pension transfer story and feel that due to their experience, they would not attempt another transfer, according to PensionBee research.
The firm revealed 42% of savers who have previously tried to change pension provider found the transfer process "so difficult" that they have been put off attempting another.
PensionBee also found more than half (51%) of savers cited "some kind of difficulty" with accessing support from their provider during the transfer process, while 22% reported long waiting times and 9% gave up after multiple failed attempts.
Additionally, 50% who attempted to transfer a defined contribution pension were required to complete paperwork, with more than a quarter (27%) having to complete multiple sets of forms, despite PensionBee noting electronic transfers are "more efficient and secure" for consumers than traditional paper-based methods.
These barriers to switching are holding savers back from attempting the transfer process again.
PensionBee also found a number of providers taking more than a month to complete transfers, with Mercer at an average of 46 days, Now Pensions at 44 days, and Capita taking an average of 40 days to transfer.
Chief executive Romi Savova said: "Long and complex processes deter people from engaging with their pensions and switching when it may be in their best interest to do so. Low levels of digitisation exacerbate chronic under-saving because people don't have the right tools and information to understand the importance of planning ahead for their financial future.
"Technology provides an opportunity for the industry to better engage savers, and it's time for pensions to make their way into the 21st century with a simple, modern pension switch guarantee."
