Defined Benefit Pension Transfer
CETV Calculator – Estimate Your Pension Transfer Value
Use our free CETV calculator to get an estimate of the potential Cash Equivalent Transfer Value (CETV) of your defined benefit (final salary) pension.
What Is a CETV?
This figure is meant to represent the value today of the future income you would have received from the scheme.
How Is CETV Calculated?
While each scheme uses its own formula, the calculation broadly follows two steps:
- Step 1: Convert your annual pension into a capital value using a transfer value multiple
- Step 2: Adjust that value to today by allowing for the time until retirement
Simplified Illustration
CETV = (Annual Pension × Multiple) ÷ (1.04^n)
Where:
- Annual pension = estimated annual pension at retirement
- Multiple = estimated cost of providing that pension
- 4% = assumed annual discount rate
- N = years until retirement
Example
- Current age: 50
- Retirement age: 60
- Annual pension: £12,000
- Multiple range: 25–33
- Estimated CETV today: £202,000 – £267,000
Important
This is a simplified estimate for illustration only. Your actual CETV will be calculated by your pension scheme and will depend on factors such as inflation protection, life expectancy, and spouse’s benefits.
CETV Calculator
Estimate Your CETV
This provides a simplified illustration of how your pension at retirement could translate into a present-day cash equivalent value (CETV). It is not a formal valuation.
Key Factors That Influence CETV
- Your Age – The younger you are, the lower the CETV tends to be, due to a longer time horizon for investment returns.
- Scheme Assumptions – Each pension provider uses its own actuarial assumptions, including life expectancy and discount rates.
- Interest Rates and Gilt Yields – Lower interest rates often lead to higher CETVs, because it costs more to provide the same level of future income.
- Inflation Protection – Pensions with inflation-linked increases can produce higher CETVs due to their higher long-term liabilities.
- Health and Longevity Expectations – Some providers may adjust CETVs based on demographic data.
Thinking About Transferring Your Pension?
If your CETV is £30,000 or more, UK law requires you to get advice from a FCA-regulated financial adviser before making a transfer from a defined benefit pension scheme.
Transferring can be a major financial decision and is often irreversible, so it’s important to understand the benefits, risks, and long-term impact.
We offer a free initial Pension Transfer Consultation to help you explore your options with confidence. Simply fill out the form below to get started — no obligation, just expert guidance.
Pension Transfer Consultation
Get Started Today
Simply complete your details below, and we will send you our Pension Transfer Consultation Pack and Enquiry Form.
As part of the consultation we will look at:
- What existing pension plans you have in place.
- What your plans are for retirement.
- Your needs for flexibility and control.
- The likely cost of more in-depth advice.
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Defined Benefit Pension Transfer Warning
Transferring away from a defined benefit pension scheme means you will lose valuable guarantees.
Taking benefits early will almost certainly reduce your pension income in retirement and is only suitable for a limited number of people and circumstances. This should not be seen as an easy option for raising cash.
If you release all your money from your pension early you will not have anything left to provide you with income in retirement.
When releasing cash from your pension, usually up to 25% is tax free, the balance is taxed at your marginal rate at the time and could change in the future.
Watch the FCA video explaining the expectations of financial advisers when advising you on defined benefit pension transfers.
Grove Pension Solutions Ltd is authorised and regulated by the Financial Conduct Authority (Reference number 465051).
What our clients say
First I want to thank both you and all your staff for helping us through this difficult decision period. You usually only retire once and so are novices at all the procedures.
Thank you for your understanding, taking us through this process so we finally understood what was needed. I will be happy to recommend you to all our friends and family should they ever need these services.
Once again you have our sincere thank
I cannot thank Grove Pension Solutions Ltd enough! From the outset to completion, my mind has been put at rest throughout. I had to make a very difficult decision with regard my pension recently due to ill-health / a terminal illness.
It was a tough and lengthy process from start to finish, however, the staff I spoke with were wonderful, in particular, Gina. They have professionalism to a T. Friendly, courteous, knowledgeable and above all, understanding.
Grove Pension Solutions assisted in moving my company pension to a personal pension, which will allow me to retire 7 years earlier than planned.
Since the FCA have made this option very difficult, Grove made the process very swift and smooth, with true professionalism throughout the process. The communication was excellent at all times, and there was always someone to answer a question if it arose.
I would highly recommend Grove Pension Solutions for your personal pension requirements.
Grove managed the transfer of my pension swiftly and kept me in touch with the process at all times. On occasions when I telephoned with questions they were patient, and regardless of who I spoke to, the staff were knowledgeable, friendly and reassuring. Grove Pension Solutions went above and beyond to complete my transfer and I cannot thank them enough.
Nothing is too much trouble, everything was explained in plain English and I was asked several times if I wanted to go through with any information again or any questions , all staff were professional and completely “knew their stuff” they returned calls when promised such a pleasure to do business with a very big thank you
In the final stages of my transfer, throughout the process the service has been very professional, regular updates by phone and email, the advisors are very friendly and explain the process in an easy to understand way. Have recommended to two other people already, wouldn't have any hesitation to use Grove Pension Solutions again, 10/10 thank you.