CEVT CALCULaTOR

Defined Benefit Pension Transfer Calculator

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What is my Defined Benefit transfer value?

If you're considering a defined benefit pension transfer, then you need to understand what your cash equivalent transfer value (CETV) is.
Your CETV is the amount your pension scheme will give you if you decide to transfer out of your final salary scheme. That’s why we have designed the defined benefit pension transfer calculator, to help you:
  • identify a realistic high and low range CETV estimate
  • use industry averages as a benchmark for your sums
  • start figuring out whether a final salary pension transfer is actually in your best interests

How does our Defined Benefit calculator work?

Our defined benefit pension transfer calculator has been designed using current industry averages, giving you a realistic idea of how much you stand to be offered as a transfer value. 

 

It couldn’t be easier. Just tell the calculator how much your annual pension income is going to be and when it’s due to start. We’ll then give you a pension transfer value range. 

 

See? We told you it was simple.

 

Defined Benefit CETV Calculator

What is a Cash Equivalent Transfer Value?

Your Cash Equivalent Transfer value is the amount your pension scheme will give you if you decide to transfer out of your defined benefit pension scheme. It is not the same as your Pension Fund amount.

You should receive an annual update from your Pension Scheme Administrator that contains this information but if you do not have an up-to-date estimate you will need to request your Cash Equivalent Transfer Value (CETV) from your Pension Scheme Administrator.

How much is your CETV?

This deferred defined benefit pension calculator offers you a realistic high and low range CETV estimate, based on current industry averages, on which to base your calculations.

Cash equivalent transfer values can range from anywhere between 20-25 times your pensionable income, although some schemes offer far more generous transfer values and some less so. Transfer values have risen in recent years for a number of reasons.

Each pension scheme uses their own calculation to decide how much you'll get if you transfer and you'll need to request a transfer value from your scheme directly. This calculator is here as a guide only.

How much is my pension worth?

A transfer value doesn't tell you how much your pension is worth. A transfer value only tells you how much you'll receive if you transfer your pension.

The true market value of your pension is often far higher than any transfer value you will be offered once you factor in the value of:

  • a guaranteed income
  • an inflation-proof investment
  • death in service benefits
  • survivor benefits for your spouse
  • market annuity rates

 

If you want to understand the true value of your defined benefit pension then you should speak to a qualified pension transfer specialist and request a Transfer Value Comparison, then you'll be able to see how much it would cost you to buy a pension equal to the one you currently have.

Download our free expert guide to

Defined Benefit Pension Transfer

Is a transfer really right for you? Uncover everything you need to know before you decided transfer your pension.

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How is my Defined Benefit Transfer Value calculated?

There are a number of factors that can affect your transfer value.

Your pension scheme rules

Different pension schemes will have different rules for how they calculate transfer values. These are rarely published and are subject to change at any time at your pension scheme trustees' discretion. 

Your age and how close you are to retirement

Research published by LCP and Royal London has shown that transfer values rise as you get closer to retirement. This is because there’s less time for the scheme to expand its assets to meet the promised payments.

How Inflation is calculated

By law, final salary pensions must rise in line with prices. This means that the cost of living and whether your scheme uses CPI or RPI to calculate inflation will have a different impact on your transfer value.

Life Expectancy

Defined benefit schemes are expected to pay out until death, and so average life expectancy will impact on transfer value. Schemes work on an ‘average member’ system when calculating sums, so if you don't fit this category you can expect your value to change - either positively or negatively!

Market performance

Pension Scheme trustees are required to offer you a fair market value for your CETV. So market performance can affect your transfer value, both positively and negatively. A drop in gilt yields in particular can impact on transfer values.

Pension Scheme funding

Trustees can adust transfer values to protect its members if the scheme is in difficulty. If the scheme is under-funded,  transfer values can be adjusted to protect those still within the scheme.

Speak to a Pension Transfer Specialist

Filled in the calculator and still not sure whether a final salary pension transfer is the right choice for you? Arrange a free consultation with a member of our team. We’d love to chat.

Frequently Asked Questions

Download our free expert guide to

Defined Benefit Pension Transfer

Is a transfer really right for you? Uncover everything you need to know before you decided transfer your pension.

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