DWP Issues Major Update On 2026 Pension Changes As Thousands Demand Faster Transfers

Thousands of savers have called for a legally enforced 10-day Pension Switch Guarantee as pressure mounts on the Department for Work and Pensions (DWP) to modernise pension transfers ahead of planned changes in 2026.

Campaigners argue that the pensions system lags far behind everyday banking, where people can switch current accounts within seven days and complete payments almost instantly. In contrast, many savers still face lengthy delays, manual paperwork and months of uncertainty when attempting to move retirement funds between providers.

PensionBee has led the campaign, which has entered a critical phase with fewer than 48 hours remaining for public support. Supporters want ministers to introduce a mandatory standard that would require pension providers to complete transfers within 10 days using fully electronic systems.

As of today, Thursday, 22 January 2026, a parliamentary petition has surged to over 16,500 signatures, officially triggering a formal response from the DWP. The movement is calling for a '10-day Pension Switch Guarantee', a legally mandated standard that would force pension providers to ditch outdated, paper-based processes in favour of instant, electronic transfers.

If the petition hits the 100,000-mark before its 24 January deadline, it could spark a full debate in the House of Commons, putting the government under unprecedented pressure to modernise the sector.

The Bureaucracy Trap: Why Millions Face Pension Transfer Delays

For many savers, the desire to consolidate multiple pots or move into a fund with lower fees is hampered by a system that hasn't kept pace with consumer expectations. Research indicates that 63% of savers believe these delays actively hinder their ability to plan for retirement.

The current 'status quo' often involves physical documents being posted between companies, a method that PensionBee argues creates unnecessary 'stress and confusion'.

At its most serious, this lack of efficiency can trap individuals in 'poor-value or unsuitable funds', effectively draining their retirement savings through higher fees while they wait for the transfer to clear.

'You can switch banks in a week,' the petition notes. 'Only the government has the power to change this.' The campaign is not just about speed, but it is about fairness and ensuring that the money people have worked their whole lives for is accessible when they need to manage it.

The DWP Response In Regards to Consultations and the Push for Protection

The Department for Work and Pensions has now broken its silence on the matter, confirming that officials are 'exploring operational improvements' to streamline the system. In a statement released this week, the government acknowledged the growing frustration but warned that mandating changes across the entire market would require primary legislation.

The DWP's approach is currently caught between two competing priorities: efficiency and protection. While officials admitted that electronic processes could drive 'real improvements', they emphasised that any new rules must not weaken safeguards against pension scams.

'We would also need to be satisfied that any changes do not... present a heightened risk of pensions fraud,' the department stated. To address these issues, the DWP plans to launch a formal consultation in the 'coming months' to decide the future of the 2026 pension landscape.

For those stuck in the middle of a transfer, the message from the industry is clear: the window to influence this policy is closing fast.