UK pension transfer compensation dropped to £41,000 in Q1 2026 due to lower gilt yields and strong markets, per Broadstone.

Compensation for typical UK defined benefit pension transfer cases fell slightly to -£41,000 in Q1 2026, down from -£44,000 in Q4 2025, according to Broadstone’s DB Redress Tracker. This follows a steep decline since a 2022 peak of £165,000, with redress now significantly lower due to falling gilt yields and strong equity returns. Most cases now show no loss, but redress may still apply in cases with high critical yields, poor investment performance, younger transfer ages, or pre-2010 transfers. The FCA’s guidelines underpin the calculations, and firms are advised to review past transfers.