Pension Transfer Value Calculator (CETV Calculator)

A Cash Equivalent Transfer Value (CETV) is the cash value that you would receive from your private sector Defined Benefit pension provider into your own personal pension. The Pension Transfer Value calculator (CETV calculator) will generate an estimate in 30 seconds for you.

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Please note the above-quoted range is only a guide calculation based on the most up-to-date assumptions from existing client data. If you are considering a pension transfer, it is important that you obtain a guaranteed CETV from your scheme administrator. Due to several unknown factors, any actual CETV your scheme offers could vary from the above mentioned range.

What Is a Pension Transfer Value?

A pension transfer value, commonly called CETV, shows the estimated monetary value of your defined benefit pension scheme entitlements.

In essence, the pension transfer value is the money you would receive if you transferred your defined benefit pension or released cash under specific circumstances.

Understanding your pension transfer value is vital when planning your retirement.

Once you have your pension transfer value, a pension transfer adviser can model a comparison showing you the growth and drawdown on a final salary pension vs. a personal pension so that you can make an informed decision for your retirement plan.

Why Use a CETV Pension Calculator?

When planning your retirement, making informed decisions is key. Defined Benefit Pension Schemes can be complicated to understand, leaving you unsure of their value or whether remaining in the scheme is the best option for you.

The CETV pension calculator simplifies this process, offering an estimated CETV based on various factors affecting your pension.

This projection can be crucial when considering the pros and cons of a defined benefit pension transfer.

It also allows you to plan for the future. Once you understand your pension’s potential cash equivalent transfer value, you can better strategise for your retirement.

Whether that’s considering other investment options, a pension transfer or deciding to remain with your current plan.

How Is My CETV Calculated?

Your CETV is calculated using multiple factors, which include:

  • Your age and proximity to retirement.
  • Your life expectancy.
  • Inflation.
  • Interest rates.
  • Gilt yields.
  • Your pension scheme rules.
  • Market performance.
  • Pension Scheme Funding.

Age and Proximity to Retirement

One of the more significant factors affecting CETV is your age and how close you are to your retirement age.

As you near retirement, the CETV may increase because there are fewer years to pay the pension benefits.

Life Expectancy

Your predicted lifespan plays a role in CETV calculations. If your life expectancy is longer, there might be more years of pension payouts, which could increase the CETV.


Inflation can erode the purchasing power of your pension over time. Therefore, the CETV calculation considers expected inflation rates to provide a more realistic present value of the pension’s future cash flows.

Interest Rates

Interest rate fluctuations play a role in determining pension transfer values. When interest rates drop, transfer values might increase; conversely, rising rates can decrease these values.

Gilt Yields

The interest rates associated with UK government bonds, known as gilt yields, directly correlate with pension transfer values.

When these yields are lower, it often leads to elevated transfer values. In contrast, higher yields typically result in decreased values.

Find out more about the impact of gilt yields on CETV values.

Pension Scheme Rules

Every pension scheme operates under a set of specific rules which can influence your CETV.

These rules outline the rights of the scheme’s members and can dictate factors like benefits on early retirement, which can affect your CETV.

Market Performance

The performance of financial markets and a pension scheme’s underlying investments can substantially impact your CETV.

A booming market might lead to higher CETVs, while a downturn can have the opposite effect.

Pension Scheme Funding

The financial health of the pension scheme also matters. If a pension scheme is underfunded and doesn’t have enough assets to cover its future obligations, it could reduce the CETV.

How the CETV Calculator Works

Because of the complexity of the CETV calculation using so many market variables, and each calculation unique to each scheme, we have used a more straightforward calculation to generate a range of which your actual CETV will fall within.

But how exactly does this calculator work?

1: We ask you to input four data points, which are:

  • Who you worked for?
  • How many years did you work there?
  • What was your final salary?
  • How many years since you left the company?

2: Once your data has been submitted, the CETV calculator considers several variables to give you your estimate.

3: The cash equivalent transfer value calculator integrates these with your inputs to generate an estimated CETV range.

4: Once you have your pension transfer value, you should speak to a pension adviser to get your exact CETV and ensure your current pension scheme is best for your retirement.

Limitations of the Defined Benefit Pension Transfer Value Calculator

While the defined benefit pension transfer value calculator offers invaluable insights into your pension’s potential transfer value, it’s crucial to understand its limitations.

Here are some limitations to be aware of.

  • It uses generalised assumptions.
  • It’s not a substitute for expert pension advice.
  • It doesn’t account for market volatility.
  • It doesn’t consider all variables.

Generalised Assumptions:

The defined benefit pension transfer value calculator operates on certain generalised assumptions.

Not a Substitute for Expert Advice

While the calculator provides an estimate, it doesn’t replace the need for professional pension advice.

A qualified pension transfer adviser can account for nuances, provide tailored guidance, and get your actual CETV.

Market Volatility

Financial markets are inherently volatile. The calculator will not account for sudden or unpredictable market shifts, which can impact pension values.

Doesn’t Consider All Pension Variables

Some personal or pension scheme-specific factors might need to be factored into the calculator, leading to potential discrepancies in the estimated transfer value.

Now You Have Your CETV, Speak With a Pension Transfer Adviser

Now you have your estimated pension transfer value; you should get your exact CETV. To do this, you can either:

  • Request one from your pension trustee or,
  • Work with a pension transfer adviser.

Why Consult a Pension Transfer Adviser?

Personalised analysis

Your financial situation and retirement goals are unique. An adviser can provide a detailed, personalised analysis of your pension options, considering all the variables that an online calculator might miss.

The analysis from an adviser would model out the growth and drawdown of your final salary pension and a personal pension so that you can compare the two options side by side.

Pension transfer specialist

Pensions, especially defined benefit schemes, can be intricate. A pension transfer specialist understands these complexities, ensuring you make informed decisions.

Regulatory insight

Pension regulations are continuously evolving. Advisers stay up to date with these changes, ensuring your decisions align with the legal landscape.

Risk assessment

Transferring out of a pension scheme may not be in your best interest. An adviser can help you weigh the pros and cons, assessing the associated risks and potential rewards.

Holistic financial planning

Beyond just your pension, advisers consider your overall financial health, providing a holistic strategy that encompasses savings, investments, and other assets.

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