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Calculating how much your final salary pension is worth

How Much Is My Final Salary Pension Worth?

Final salary pensions have long been seen as the gold standard of retirement savings, offering an income for life that’s usually index-linked to keep up with inflation.

Yet many people are reevaluating the conventional wisdom that you can’t do any better than a defined benefit pension scheme in light of today’s soaring pension transfer values.

The cash lump sum pension plans offer to transfer out of their final salary pension scheme is referred to as a cash equivalent transfer value or CETV. You receive this in exchange for swapping your defined benefit scheme for a defined contribution pension arrangement.

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What is a final salary pension?

A final salary or defined benefit pension is one of the most secure retirement arrangements around, offering you a lifelong income from retirement to death based on your earnings and your length of membership in the scheme.

Defined benefit pensions are so secure that many people overlook their potential drawbacks, including difficulties with leaving cash to loved ones after the pensioner’s death.

Although giving up a retirement income for life by cashing in your final salary pension for a lump sum might seem like a bad deal, transfer values today are so inflated that many people are now reconsidering the concept of pension transfers.

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How to calculate your final salary pension transfer value

The generosity of final salary pensions has proved expensive in an era of rising longevity of depressed investment returns, so employers are increasingly keen to shift pension liabilities off their books.

How to calculate your final salary pension transfer value

Offering a sizeable pension transfer value is partly to encourage people to swap their final salary pension for a defined contribution one. It also means that a final salary pension is now considered to have value beyond an annual income – a quantifiable cash lump sum in the form of a CETV.

How is a cash equivalent transfer value calculated?

A CETV is usually calculated as a multiple of the annual benefit you’re entitled to from the scheme, but how large a multiple will depend on your pension provider and your circumstances.


Is my final salary pension transfer offer good value?

As well as asking your pension fund for a cash equivalent transfer value, it’s also worth using a final salary pension transfer calculator. The Drewberry Final Salary Pension Transfer Calculator lets you do your own pension transfer calculations to make sure the CETV you’re being offered is good value.

Calculate your final salary pension transfer value to find out if you're getting a good deal on your DB pension transfer

If you’ve already received a pension transfer value, Drewberry’s defined benefit transfer value calculator can help determine whether the offer is fair.

Even if you haven’t yet requested a CETV from your pension provider, the Drewberry final salary transfer calculator could be a good place to start. If you know what your final salary pension could be worth, you can ensure you’re getting the best deal possible for your retirement if you do decide to go ahead with a pension transfer.


Final Salary Pension Transfer Calculator

Find out how much your final salary pension might be worth in today's money if you considered accepting a cash equivalent transfer value from your scheme.
This calculator is an excellent first step when deciding whether to transfer away from a final salary pension scheme.
Damien Fahy
Have you received a pension transfer value?
What is the transfer value the pension scheme has offered? This is often called a cash equivalent transfer value and is the lump sum the pension scheme is willing to pay you to transfer out of the final salary scheme.
Input the details from your last pension statement below and find out what we would anticipate to be a good cash equivalent transfer value.
Year of Pension Valuation This is the year your annual pension income was last calculated for, we need this date so we can multiply the value of your pension income up to today's value.
Annual Pension Income This is the annual income you can expect to receive from your pension.
At what age are you due your pension? This is the age at which you expect to start receiving your pension.
First Name
Date of Birth
Email Address Enter your email address to receive your summary report and our exclusive 20 page 'Making Sense of Final Salary Pensions' e-guide.

How good is your Final Salary transfer value?

Using our expertise we have modelled your results below so you can see what your final salary is likely to be worth as a single lump sum if you were to consider transferring out of the pension arrangement. Based on our experience and understanding of the transfers offered by various schemes we have created bandings based on what we would deem to be good value.

We can make our estimation even more accurate if you are able to answer the questions below. It could be that given your personal circumstances even a lower value transfer may still be attractive.
Adjust final salary calculator

Make your transfer value estimation more accurate by answering the following...

Factors such as your current state of health and how soon you wish to access your pension can have a significant impact on what may be considered a good pension transfer value. Answer the following to find out whether your personal circumstances may have an impact on what we would deem to be a good transfer value.

Are you looking to take benefits right now?
Do you require a lump sum at retirement / now?
Your life expectancy Depending on the quality of your health it may be more or less beneficial to transfer out of your final salary pension. Click here to find out how we calculate life expectancy and what we consider to be poor and excellent health.
Increases in Deferment Does your scheme offer increases if you defer your pension before starting it.
Increases in Retirement Does your scheme offer increases in your pension income whilst receiving it.

Your Updated Results

Based on your personal circumstances we have updated your results below. Remember this is only an estimation, it is important to speak to a financial adviser when it comes to considering your final salary transfer options, please do not hesitate to call us on 02084327333.

If you are considering what to do with your final salary pension it is very important to speak to an expert pension adviser. Please do not hesitate to call us on 02084327333.
Neil Adams - Final Salary Pension Expert

These calculators help but sometimes it doesn't beat talking to a human. If you need any support please do not hesitate to pop us a call on 02084327333.

Neil Adams
Head of Pensions Advice at Drewberry


This calculation and additional information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice.

A transfer out of a final salary scheme is irreversible and can only be done after advice has been given by a qualified financial adviser.

The transfer value bandings we calculate should only be treated as guidance, your personal circumstances and other wealth must be taken into account to understand whether your pension transfer is good value given your specific situation. For more information on the assumptions made in this calculator please click here.


Is it worth me transferring my final salary pension?

Whether or not you should transfer your final salary pension is dependent on your personal circumstances. Like all decisions, it’s one you should consider by weighing up the pros and cons of transferring your DB pension, some of which are outlined below.


Positives and negatives of taking a pension cash equivalent transfer value

Benefits of final salary pension transfers

Although your defined benefit pension offers you a guaranteed income for life, there may be a number of benefits to transferring out of your pension plan. These include:

  • Defined benefit pensions usually die with you. Transferring out and taking a cash lump sum from your pension scheme means you have far more freedom when it comes to loved ones inheriting your pension.
  • More control of your retirement: the benefits of defined benefit pension transferThe new pension freedoms give you unprecedented control over how you want to provide yourself a retirement income, which you could miss out on by sticking with your final salary pension.
  • Pension transfer values are so high at the moment that there is unlikely to be a better time to transfer out of your final salary pension scheme.
  • By transferring out of your final salary scheme, you may get a better deal if you’re in poor health and/or a smoker by purchasing an enhanced annuity. If you stay in a DB scheme as a smoker or someone with ill health, you could draw a pension for fewer years than a healthier, longer-lived colleague. Ultimately, you could receive less money than them even though you’ve paid the same in pension contributions.

Should I stay in my final salary pension scheme?

One of the biggest risks of a final salary pension transfer is that you’ll no longer have a secure, lifelong income. Pension transfers are irreversible, so you should think carefully before proceeding.

Other potential drawbacks include:

  • You’ll have to manage your pension fund’s investments yourself  and take on any risks involved, although this is an area where a financial adviser is well-placed to help.
  • If your investments perform badly and/or you spend too much, you might run out of money. Again, this is where pensions advice is essential to make sure you have the retirement you always thought you would.
  • If you want a secure income after transferring out of your defined benefit pension plan, one option is to buy an annuity. However, today’s annuity rates are far lower than they used to be, unless you’re in poor health and therefore qualify for an enhanced annuity.

Drewberry recommends that you always seek financial advice and/or pensions advice before considering transferring you final salary pension. If your DB pension is worth more than £30,000, taking advice is required by the FCA.

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Get pension transfer advice now

Need final salary transfer advice?

Our advisers are here to help if you’re considering taking advantage of a high cash equivalent transfer value from your pension provider. We’re not just here to make sure the pension transfer goes off without a hitch; we can also offer you advice on what to do with your new pot of retirement savings to achieve your retirement goals.

Expert pensions adviser Neil Adams can help you decide if a final salary pension transfer is right for you

Today’s pension transfer values are so high it’s increasingly common to look at the value of a final salary pension scheme outside of the annual income it can provide. Whereas transferring your pension may not have been a feasible option before, it could be worth taking another look.

So if you’re trying to decide whether or not to transfer your defined benefit pension, why not give us a ring on 0208 432 7333? We can offer fast and efficient help and advice for every aspect of your pension transfer needs.

Neil Adams
Pension Specialist at Drewberry

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