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A cash equivalent transfer value (CETV) is the lump sum a defined benefit pension scheme offers in exchange for giving up your guaranteed income. See your estimate instantly. No form, no email address, no callback required.
This is an illustrative estimate only, not your scheme's official CETV. Your scheme's actuary calculates the real figure, and schemes must provide one guaranteed CETV free each year on request. DB transfers above £30,000 require regulated advice.
What is a Cash Equivalent Transfer Value (CETV)?
A CETV is the lump sum your defined benefit pension scheme would pay you in exchange for giving up your right to a guaranteed, typically inflation-linked income for life. It is not a savings balance: it is your scheme actuary's estimate of the capital sum needed today to replace the income you have been promised. For expats, the CETV is the starting point for any conversation about a pension transfer, whether to a SIPP for UK residents and eligible non-residents, or a QROPS for those permanently resident abroad. Understanding your indicative figure is the first step in deciding whether that conversation is worth having.
CETV Estimator
About your pension scheme
Tell us about the scheme you left. Don't worry if you're unsure of some details - we'll use sensible defaults.
Is a DB pension transfer right for you?
Transfers above £30,000 require regulated advice by law. We can introduce you to a qualified specialist.
How the number is built
How pension schemes calculate a CETV
A CETV is not a savings balance. It is an actuarial estimate of the lump sum your scheme would need today to replace the defined benefit pension it has promised you. Three things drive the figure.
The gilt yield basis
The scheme actuary discounts your future pension payments back to today using gilt yields, alongside assumptions about price inflation and how long you are expected to live. When gilt yields rise, the present value placed on those future payments falls, which is why CETVs generally move in the opposite direction to interest rates. A sharp rise in gilt yields, such as the one seen in late 2022, caused transfer values to fall significantly for many deferred members.
What the CETV multiple means
The multiple is your CETV divided by your annual pension. A pension of £10,000 a year with a CETV of £250,000 has a multiple of 25. During the low-rate era up to 2021, multiples of 30x or higher were common at many schemes; after the sharp rise in gilt yields from 2022, they fell considerably for many deferred members. The rate environment drives the multiple as much as the underlying pension promise. A high multiple does not by itself make a transfer suitable: you would be giving up a defined, typically inflation-linked income for life and taking on investment and longevity risk yourself.
Deferred members and revaluation
If you have left the employer and your accrual has stopped, you are a deferred member. Your benefit is revalued each year up to your normal retirement date under the scheme rules. Your CETV reflects that revalued deferred pension rather than a salary-linked figure that is still building. The older you are, the shorter the period of revaluation remaining, which affects how the scheme actuary projects your entitlement to retirement.
Drivers of the figure
What makes a CETV higher or lower?
Several factors push a CETV upward or downward, some within your control, most not.
Age and proximity to retirement
The closer you are to your scheme's normal retirement age, the shorter the discounting period. This generally results in a higher CETV relative to your annual pension entitlement, all else equal. A younger deferred member has a longer period for revaluation and discounting, which can reduce the multiple.
Gilt yields and the discount rate
The scheme actuary uses a discount rate broadly linked to gilt yields. When gilt yields are high, the present value of future pension payments is lower, so the CETV falls. When gilt yields are low, as they were through most of 2010 to 2021, CETVs tend to be higher. This relationship means your CETV can change considerably from one year to the next with no change to your pension entitlement.
Inflation linkage
If your pension is linked to RPI or CPI inflation, the scheme must project and discount those future uplifts. A pension with full inflation linkage will typically produce a higher CETV than a fixed pension of the same starting amount, because the scheme must set aside more capital to fund the growing payments.
Spouse and dependant benefits
Most defined benefit schemes pay a reduced pension to a surviving spouse. The actuary factors this into the CETV: the more generous the death benefits, the more capital the scheme allocates, and the higher the transfer value. If you transfer out, those spouse benefits leave with the defined benefit and become your responsibility to provide within your new arrangement.
The legal requirement
The £30,000 regulated advice gate
UK law requires you to take regulated financial advice from a qualified adviser before a defined benefit pension with safeguarded benefits worth more than £30,000 can be transferred. This rule applies regardless of where you live. If your CETV is above that threshold, you cannot complete a transfer without regulated advice, and your scheme administrator will ask for written confirmation that you have received it.
What this means in practice
- +A qualified adviser must assess whether a transfer is in your best interests based on your full financial picture.
- +The advice must be personal and specific to you, not generic guidance about pension transfers in general.
- +Your scheme will ask for a signed declaration or letter from the adviser before processing the transfer.
- +Pharos Introductions does not provide that regulated advice. We introduce you to the regulated specialist who does.
For the pension transfer value calculator on this page, your result is illustrative only. This is an illustrative estimate only, not your scheme's official CETV. Your scheme's actuary calculates the real figure, and schemes must provide one guaranteed CETV free each year on request. The estimate gives you a useful order of magnitude, but it cannot replace the official quotation from your scheme administrator.
The trade-off
What a transfer means giving up
A defined benefit pension is one of the most valuable financial assets a person can hold. Before evaluating a CETV, it is important to understand what you would be exchanging it for.
Guaranteed income for life
Your defined benefit pension pays you a specific income every year from your retirement date until you die, however long that is. A transferred pot must be invested and drawn down by you, which means you bear the risk of poor investment returns or outliving your money.
Inflation protection
Most defined benefit pensions increase each year in line with inflation (subject to scheme rules and statutory caps). That linkage is built into the scheme and requires no action from you. In a transferred pot, inflation protection is your responsibility and depends entirely on investment performance.
Spouse and dependant pension
Most defined benefit schemes pay a reduced income to a surviving spouse or dependant. If you transfer out, those automatic benefits end. You would need to arrange equivalent cover within your new pension, using part of the CETV.
This counterweight is why regulated advice is required by law before a transfer can proceed. A regulated specialist will assess whether the potential benefits of a transfer outweigh what you would be giving up, based on your individual circumstances.
Next steps
What to do with your CETV estimate
An indicative CETV is a starting point, not a conclusion. Here is how to use it.
Request your official CETV from your scheme
Contact your scheme administrator and request a formal CETV quotation. Schemes must provide one free each year on request. This is the only figure that your scheme will act on; the estimate from this tool is illustrative only.
Understand the transfer route available to you
Your options depend on where you live. If you are in the UK, a SIPP may be relevant. If you are permanently resident abroad, a QROPS may be available, subject to the rules in your country of residence and the HMRC recognised schemes list. A regulated specialist can clarify which routes are open to you. You can also explore the potential pension IHT exposure your pension might carry under the April 2027 rule change.
Request a specialist introduction
A regulated specialist can help you understand what your CETV means for your situation, whether a transfer would be in your interest, what transfer routes are available given your country of residence, and how a potential transfer interacts with your broader financial position and tax obligations. Pharos does not provide that advice; we introduce you to the specialist whose jurisdiction permissions and experience fit your circumstances. We are not tied to any firm.
Your transfer options, reviewed by a regulated specialist
We introduce you to a qualified specialist based on your situation. Not tied to any firm or provider.
Questions
Common questions about CETVs and DB pension transfers
What is a Cash Equivalent Transfer Value (CETV)?
A CETV is the lump sum your defined benefit (DB) pension scheme would offer you in exchange for giving up your right to a guaranteed income in retirement. It represents the scheme's actuarial estimate of the cost of providing your promised pension, and it fluctuates with interest rates, your scheme's funding position, and your age. Schemes are required to provide one guaranteed CETV quotation free of charge each year on request.
How is a CETV calculated, and what is the CETV multiple?
A scheme actuary discounts your future pension payments back to today using gilt yields, together with assumptions about price inflation and life expectancy. The "multiple" is shorthand for the CETV divided by your annual pension: a £10,000 pension with a £250,000 CETV has a multiple of 25. Because this depends on gilt yields, the same pension can produce very different CETVs as interest rates move. During the low-rate era up to 2021, multiples of 30x or higher were common at many schemes; after the sharp rise in gilt yields in 2022, they fell considerably for many deferred members. The multiple at any point reflects the current rate environment as much as the underlying pension promise.
Do I legally need regulated advice to transfer my DB pension?
Yes. UK law requires you to take regulated financial advice from a qualified adviser before a defined benefit pension with safeguarded benefits worth more than £30,000 can be transferred. This is a statutory consumer protection measure. Pharos can introduce you to a regulated specialist who can provide that advice; we do not provide it ourselves.
Can I transfer my defined benefit pension to a SIPP or QROPS as an expat?
In some cases, yes. A SIPP (Self-Invested Personal Pension) is available to UK residents and some non-residents. A QROPS (Qualifying Recognised Overseas Pension Scheme) may be available to those permanently resident abroad. However, DB transfers above £30,000 require regulated financial advice by law, and the suitability of any transfer depends on many factors including your health, other income sources, and your country of residence.
Is a DB pension transfer always the right decision for expats?
Not necessarily. A defined benefit pension provides a guaranteed income for life, which has significant value, especially if you have no other guaranteed income sources. A high CETV may be attractive in isolation, but the decision to transfer depends on your health, financial resilience, risk appetite, and long-term plans. This illustrator helps you understand the scale of the value; regulated advice helps you decide whether transferring it makes sense for your specific situation.
What does a higher or lower CETV actually mean?
A higher CETV means the lump sum on offer is larger relative to your annual pension income. Whether that is attractive depends on your personal circumstances, not on the number alone. A higher CETV does not automatically mean you should transfer: you would be exchanging a defined, typically inflation-linked income for life for a pot of money that you then invest and draw down yourself, accepting all the investment and longevity risk that your scheme currently carries.
Can I use this calculator if I live in the USA or another country?
Yes. This illustrator works wherever you live, because it only estimates the UK scheme value, not your local tax position. Where you are resident, including the USA, affects how any transfer would be taxed and whether a SIPP or QROPS is even appropriate, so a non-resident usually needs specialist advice in both the UK and their country of residence.
Learn more about QROPS for expatsWhy is this CETV calculator free when others require you to register?
We believe you should be able to understand the scale of your pension transfer value before anyone asks for your details. The estimate is free and immediate because an informed enquiry is better for everyone. If, after seeing your result, you want to explore your options with a regulated specialist, that is when we make an introduction. We are not tied to any single firm or provider.
Keep exploring
Related services and guides
- UK pension reviewWhat a regulated specialist checks before any transfer.
- Pension IHT Exposure ProjectorHow the April 2027 change could affect an unused pension.
- QROPS explainedWhen a QROPS makes sense and how the Overseas Transfer Charge works.
- DB pension transfers explainedWhat giving up a guaranteed income really involves.
A CETV estimate is only the starting point. A regulated specialist can assess transfer suitability, tax position, and the real trade-offs behind the number.