How Much Pension Mis-Selling Compensation Can I Get?
Nadeem Pervazis a solicitor at Edward & Amaury Solicitors, a law firm authorised and regulated by the Solicitors Regulation Authority. Content is reviewed for legal accuracy and compliance with FCA guidance and SRA conduct standards.
TL;DR — Quick Summary
- ▸Compensation aims to restore you to the position you would have been in — the gap between your actual position and where you should have been.
- ▸DB transfer redress under PS22/13 is calculated by comparing the cost of replicating lost DB benefits against the current fund value.
- ▸The FOS cap is £430,000 for post-April 2019 acts — claims above this require court proceedings.
- ▸The FSCS limit is £85,000 per failed firm — multiple failed firms can each be claimed against separately.
- ▸The quality of the loss calculation and supporting evidence significantly affects the final award.
How much you can recover in a pension mis-selling claim depends on the size of your actual loss, the route you take, and whether the firm is still solvent. Understanding the caps, calculation methods, and what factors affect the amount is essential before starting a claim — and can significantly influence which route you pursue.
Quick Answer
Compensation puts you back where you should have been. The specific amount depends on the type of claim, the loss calculation, and the route. Contact us for a free assessment — we quantify losses as part of our initial review.
Compensation Caps — FOS and FSCS
| Route | Cap | Notes |
|---|---|---|
| FOS — post April 2019 | £430,000 | Per complaint; firm must be solvent |
| FOS — April 2014–March 2019 | £350,000 | Per complaint |
| FOS — before April 2014 | £150,000 | Per complaint |
| FSCS — failed firm | £85,000 | Per failed firm; no cap if firm still solvent and using FOS |
| Court proceedings | No cap | Full loss recoverable; costs risk applies |
DB Transfer Compensation — The PS22/13 Method
Under FCA PS22/13, DB transfer compensation is calculated as follows:
- Calculate the cost of replacing the DB benefits given up — using standardised actuarial assumptions to find the fund needed today to buy the equivalent guaranteed income in the open market.
- Compare against the actual current fund value.
- The shortfall (if any) is the compensation payable, typically as a lump sum into a pension or as a cash payment net of tax relief adjustment.
Because DB benefits are expensive to replicate commercially, PS22/13 redress figures are often very substantial — particularly for younger claimants or those who transferred large pots. See our detailed PS22/13 redress guide.