Cash equivalent transfer value (CETV)

A cash equivalent transfer value (CETV) is calculated as the cash value placed on your promised defined benefit pension by your pension scheme.

If you wish to consider transferring out of benefit scheme before your pension payments begin, you will need to start by applying for a CETV. Please note that your scheme may charge associated application fees if you ask more than once a year for a CETV.

The administrator of your pension scheme will be able to provide you with a CETV pension statement. This will enable you to seek advice and decide whether a pension transfer is the right option for you.

Pension transfer values are only available to "deferred members" of defined benefit pension schemes. This means that you've left the company, or you are about to leave but are yet to start receiving your pension benefits. Once a pension is already in payment, it cannot be transferred.

How much might my pension be worth?

There are many different factors which will affect your pension transfer value. It will depend on your age, the level of forecast pension when you retire, your retirement date and how generous the annual increases are on your pension, both in deferment and when it gets paid. To find out how much your pension might be worth, you can ask your old employer or pension scheme for a CETV statement, and this will usually arrive in a few weeks.

Tideway are pension transfer specialists and we have seen quotes from an increasing number of pension schemes. Therefore, we may have seen one from your employer already. If this is the case, we may understand your pension scheme’s process, calculations and timeframes and could assist you in understanding your offer.

View our list of pension schemes and call us on 020 3143 6100 if your scheme is on the list.

It is also important to note that new proposals have been made which permit any unused drawdown account to be passed on, free from inheritance tax, when you die. If you are yet to receive a transfer offer, you can create an estimate using Tideway’s Defined Benefits Pension Transfer Value Calculator.

If you already have a CETV for your pension, you can make an enquiry and we will get back in touch with you.

To see how we assess the relative value of CETVs and what makes them go up and down please review our first online tutorial.

Next: How the transfer advice process works →

Tideway Investment Group comprises the following entities: Tideway Investment Partners LLP and Tideway Wealth Management Limited. Tideway Wealth Management Limited is an appointed representative of Tideway Investment Partners LLP, which is authorised and regulated by the Financial Conduct Authority. FCA number: 496214.

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