Pension transfers being 'unnecessarily' delayed due to scam warnings

PensionBee argues there is ‘no clear correlation’ between the number of scam flags and the number of scams

Martin Richmond
clock • 3 min read

Thousands of pension transfers are being “unnecessarily” delayed by providers raising scam warning flags when there is no actual risk of a problem, analysis from PensionBee finds.

This suggestion comes after XPS Group data showed there had been a rise in the percentage of red and amber warning flags raised relating to pensions transferred out of XPS administered schemes. In July, the consultancy's Scam Flag Index showed the amount of pension transfers which raised a scam warning flag exceeded 90% for the second time this year. However, PensionBee noted analysis of government data indicated there is "no clear correlation" between the number of flags raised and the number of scams. The provider's analysis of government data published in 2023 found of 290,000 pens...

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