Final Salary Pension Transfer Value (CETV) Calculator 2026
Estimate your Cash Equivalent Transfer Value (CETV) for a final salary (defined benefit) pension. Typical CETV is 20-30x annual pension. Understand the risks of transferring away from a DB scheme.
Final Salary CETV Estimator
A Cash Equivalent Transfer Value (CETV) is the lump sum your DB (defined benefit/final salary) scheme will offer you to give up your guaranteed pension income. This is an estimate only — your scheme's actuary calculates the actual value.
Frequently Asked Questions
What is a CETV?
A Cash Equivalent Transfer Value (CETV) is the lump sum a defined benefit (final salary) pension scheme will offer you to give up your guaranteed pension rights. The CETV is calculated by the scheme's actuary based on government gilt yields, life expectancy, and the pension benefits accrued.
How is the CETV calculated?
The scheme actuary discounts future pension payments back to a present value using prevailing gilt yields and mortality assumptions. When gilt yields are low (as in 2019-2021), CETVs were very high (sometimes 40-50×). With higher yields (2023-2026), CETVs are typically 20-30× annual pension.
Should I transfer my final salary pension?
For most people: No. FCA analysis shows the vast majority of DB pension transfer advice is unsuitable. DB pensions provide: guaranteed income for life, spouse's pension, inflation protection, no investment risk. Only transfer if: terminal illness, no spouse, unique circumstances — always with regulated FCA advice.
Do I need regulated financial advice for a DB transfer?
Yes — if your DB pension benefits are worth more than £30,000, you MUST obtain regulated financial advice from an FCA-authorised adviser before you can transfer. Advisers must hold a Pension Transfer Specialist qualification. Be extremely cautious of advisers who recommend transfers to self-invested personal pensions (SIPPs).
What is the Critical Yield?
The Critical Yield is the annual investment return needed on a transferred pot to match the DB pension income for life. If the Critical Yield is 6%+, the transfer is generally inadvisable because achieving consistent 6%+ real returns involves significant risk.
What happens to my DB pension if my employer goes bust?
Private sector DB schemes are protected by the Pension Protection Fund (PPF). The PPF pays 90% of promised pension (capped) for those who have not yet reached normal pension age, and 100% for those who have already retired.
Can I take a CETV and keep some DB pension?
No — it's all or nothing. You either take the CETV and transfer, or keep all the DB pension. Once transferred, you cannot reverse the decision.
What is the PPF compensation cap?
The PPF cap for 2025/26 is approximately £44,396/year (for someone at age 65). Members in the PPF receive 90% of their pension up to this cap. Above this level, benefits are capped. Long-serving employees are protected by a special rule (PPF compensation increases with service).