Defined benefit (DB) pension transfer compensation continues to be nil in the majority of cases, with 2025 marking a year of “radical decline” in potential redress, Broadstone’s DB redress tracker has revealed.

The consultancy’s quarterly tracker showed the central estimate of compensation due for a typical DB transfer redress case increased slightly between Q4 2025 and Q1 2026, from around minus £44,000 to minus £41,000.

This indicates that, under the modelled assumptions, the example consumer is now calculated to be better off as a result of the transfer.

Broadstone said the modest change was driven primarily by falling gilt yields, although this was partly offset by strong equity market performance.

While redress was typically payable in pension transfer cases prior to 2025, Broadstone noted that this position shifted through the year, with most cases now resulting in a “no loss” conclusion.

Indeed, the tracker showed redress falling by around £25,000 over 2025, from approximately minus £16,000 in Q1 2025 to around minus £41,000 in Q1 2026.

Meanwhile, the longer-term trend highlighted an even sharper decline.

After peaking at around £165,000 in Q1 2022, estimated compensation has fallen by more than £200,000 over the past four years.

Broadstone also highlighted a correlation between the likelihood that a consumer will make a claim and whether redress is ultimately payable.

Where individuals believe they benefited from the transfer, they are less likely to pursue a claim, whereas claims are more common when consumers feel financially worse off.

Factors that increase the likelihood of redress being payable include a high critical yield at the point of transfer, poor post-transfer investment performance, a younger age at transfer, and older cases, particularly those dating back to before 2010.

Commenting on the findings, Broadstone senior consultant and actuary, Simon Robinson, warned that the average level of DB transfer redress remains “historically low”, meaning most cases will still show no loss at the start of 2026.

However, he added that compensation remains due in a significant minority of cases, particularly where warning signs such as high critical yields are present, and urged firms to review historical transfer advice to identify areas of concern.

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