Compensation falling for ill-advised DB transfers thanks to high gilt yields

Redress has ranged between £100,000 and £150,000 since 2018

Hope William-Smith
clock • 1 min read

Clients who were ill-advised to transfer out of their defined benefit (DB) pension scheme are now due “significantly less compensation” compared to what they could have received at the start of last year, OAC says.

The actuarial consultancy's DB redress tracker shows rising gilt yields are behind the falling levels of compensation available this year. OAC's tracker followed the example of an individual who left their final salary arrangement in 2018, aged 50, with a pot value of £10,000 per annum. A compensation claim for this made in Q1 2022 would have meant the individual was eligible for £165,000. This figure declined to around £50,000 in the second quarter of this year, halving again to around £22,000 in Q3. Redress has typically ranged from £100,000 to £150,000 since 2018, with supressed...

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