What is a Pension Transfer Value?

I’m thinking about moving my pension to another pension fund and have been given a ‘pension transfer value’. Is this how much I would get?

Question asked by Thomas King
17/09/2019

A pension transfer value is the amount your existing pension scheme will pay to your new pension provider if you want to move your pension across to a different scheme.

For a defined benefit scheme, your pension transfer value is calculated by the trustees of your pension scheme, who convert the benefits you’ve built up over the years into a cash sum. The transfer value is sometimes also known as a cash-equivalent transfer value (CETV).

You might sometimes be offered a higher transfer value, known as a transfer incentive or an enhanced transfer value. The enhancement can only be made to the receiving scheme (previously these enhancements could be paid as an immediate cash payment to the member).

It’s important to benchmark your final salary pension transfer value against the rest of the industry to make sure you’re getting a good deal. We’ve built our Defined Benefit Pension Transfer Calculator to help with just that.

Many employers offer these incentives to encourage members to transfer out and therefore reduce the employer’s liability to scheme. It’s a good idea to seek pension advice if you’re uncertain whether to accept the transfer value you’ve been offered.

If you’re in a defined benefit scheme that’s under-funded, bear in mind that the transfer value you are offered may not be as much as you were expecting.

Our Services & Tools

See Your Financial Future
Find > Organize > Simplify
We exist to improve your financial wellbeing

We use clever technology to bring your financial future to life

  • Find, organise and simplify your Pensions, ISAs and other investments.
  • Plan your financial future and put a strategy in place to achieve this.
  • Regularly review how you are doing to make sure you stay on track.

Frequently Asked Questions

Contact Us

Head Office & Pensions and Investments
Senator House
85 Queen Victoria Street
London
EC4V 4AB
Personal Insurance & Accounts Payable
Telecom House
125-135 Preston Road
Brighton
BN1 6AF
Drewberry London Office MapDrewberry Brighton Office Map

If you are unhappy with our service, we have a complaints procedure, details of which are available upon request. If you are unhappy with how your complaint has been dealt with, you may be able to refer your complaint to the Financial Ombudsman Service (FOS). The FOS website is www.financial-ombudsman.org.uk.

Drewberry Ltd is registered in England and Wales. Companies House No. 06675912

Drewberry Ltd registered office: Telecom House, Preston Road, Brighton, England, BN1 6AF. Telephone 0208 432 7333

Drewberry Ltd (Financial Conduct Authority No. 505473) is an Appointed Representative of Quilter Wealth Limited and Quilter Mortgage Planning

Limited, which are authorised and regulated by the Financial Conduct Authority.