DB pension transfer compensation hits record low in 2025 – Broadstone

Broadstone’s latest tracker found compensation for defined benefit (DB) pension transfer cases dropped sharply in 2025, with most cases now showing no loss. 

Compensation fell from around -£16,000 in early 2025 to -£41,000 by early 2026. 

Four years ago, redress peaked at £165,000 but has now dropped by over £200,000. 

Broadstone said most cases at the start of 2026 showed consumers were financially better off after transferring out.

Research found people who benefited from their transfer are less likely to make a claim. 

Simon Robinson, senior consultant and actuary at Broadstone, said: “The average level of DB transfer redress remains historically low and means that most cases will still show ‘no loss’ at the beginning of 2026. 

“Despite this, we are still seeing many cases where compensation is due. 

“A high critical yield at the time of transfer is often a warning sign that a claim will arise and redress will become payable.”

Robinson added: “Firms should review their historic transfer business to identify any cases of particular concern.”