Compare a defined benefit pension with its quoted cash equivalent transfer value (CETV) using clear UK pension figures.
This comparison ignores inflation-linked increases, spouse or dependant benefits, guarantees, tax, charges, investment volatility and longevity. It cannot show whether transferring is suitable.
How to use the Pension Transfer Value Calculator
Enter the annual pension promised by your defined benefit scheme, the cash equivalent transfer value quoted by the scheme and a withdrawal rate you want to test. The calculator shows the CETV multiple and an illustrative first-year withdrawal from the transferred amount.
How the comparison is calculated
| Result | Calculation |
|---|---|
| CETV multiple | Quoted CETV ÷ annual defined benefit pension |
| Pension-to-value percentage | Annual pension ÷ CETV × 100 |
| Illustrative withdrawal | CETV × entered withdrawal rate |
| Illustrative income difference | Illustrative withdrawal − annual defined benefit pension |
What is a cash equivalent transfer value?
A CETV is the cash amount a defined benefit scheme offers in exchange for giving up the promised scheme benefits and moving to another pension arrangement. The scheme calculates it using actuarial assumptions, so a simple online multiplier cannot reproduce the official figure.
Why the transfer multiple is not a decision rule
A 25-times multiple means a £300,000 CETV is being compared with £12,000 of annual pension. It does not mean the transfer is good or bad. The guaranteed pension may rise with inflation and may include dependant benefits, while transferred money is exposed to investment returns, fees and the risk of running out.
UK advice requirement
MoneyHelper explains that most people are better off keeping a defined benefit pension and that regulated financial advice is required before transferring safeguarded benefits worth more than £30,000 to a defined contribution scheme. Read its defined benefit pension transfer guidance before taking action.
What to check before considering a transfer
Review pension increases, early-retirement reductions, spouse and dependant pensions, death benefits, guarantees, scheme funding, transfer deadlines, investment charges, tax and how long the transferred pot may need to last. A personal recommendation must consider your wider finances and objectives.
Related calculators
Model tax-efficient savings with the ISA Calculator UK. Estimate longer-term retirement funding with the Retirement Calculator UK. Explore withdrawals from an invested pot with the Pension Drawdown Calculator UK. Browse all tools on the United Kingdom Calculator homepage.
Frequently asked questions
Can this calculator produce my official CETV?
No. Your pension scheme must calculate and issue the formal cash equivalent transfer value.
What does a CETV multiple mean?
It is the quoted transfer value divided by the annual defined benefit pension. It is a comparison ratio, not a recommendation.
Is a higher transfer value always better?
No. Suitability depends on the guaranteed benefits being surrendered, personal circumstances, charges, tax, investment risk and retirement needs.
Do I need financial advice?
Regulated advice is generally required before transferring safeguarded benefits worth more than £30,000 to a defined contribution scheme.
Is the withdrawal rate a safe income rate?
No. It is only a rate chosen for comparison. Sustainable withdrawals depend on returns, inflation, charges, lifespan and future spending.