The 'Index' reveals the true damage ceding companies are inflicting on the over 55's personal finances.
Mercer is the worst culprit for delaying the release customers' money according to My Pension Expert's Retirement Fairness Index. The game-changing index, which launched today, has revealed the permanent damage ceding companies can inflict on their customer's finances.
Data collected from October 1st 2017 to March 31st 2018 reveals that Mercer takes a whopping 113 days to release its funds to clients looking to switch retirement income providers. This is 85 days longer than the RFI's most consumer friendly company Sanlam, which takes just 28 days to release funds. Check out our Infographic to find out more.
Industry regulations make it impossible to release pension funds immediately, however Mercer's delay undermines the FCA's initiative for consumers to shop around for the best deal. My Pension Expert (MPE) has calculated that Mercer is costing its' clients £889.95, the equivalent of just over 4 months' worth of food shopping.
Shockingly, Mercer is not the only company to leave their customers permanently out of pocket. Reliance Mutual take 67 days longer than Sanlam to release funds, whilst Capita take 50 days longer; such delays cost customers £701.49 and £523.50 respectively.
MPE has pledged to continue holding ceding companies to account for their negligence through the quarterly publication of the Retirement Fairness Index. It is hoped that the RFI will prompt monitoring bodies to take decisive action against unfair ceding company policies.
These irreversible financial loses to consumers are simply not acceptable. It's hard to believe such practices have gone unchallenged for so long. As shocking as MPE's research is, it acts as a much needed wake up call to the sector. We intend to continue monitoring ceding companies and hold them to account. We will also be approaching the FCA with our findings and hope to work with them to ensure that the sector puts consumers first.
Speak to one of our experienced Retirement Technicians for information about your pension income options and how My Pension Expert can help you through the process.