What Is the Transfer Value of a Pension
What a pension transfer value is, how a defined benefit CETV is calculated, what makes it change, how long it is guaranteed, and what you would give up.
Reviewed 22 October 2026 · 10 min read
Free chat · Not advice · For UK residents
Thinking about transferring your final salary pension?
Understand your options first. Book a free, no-obligation chat with Phillip Handley, a Chartered Financial Adviser with many years' experience in defined benefit pension transfer advice.
- 15 minutes, by phone
- Plain English, no jargon
- No obligation, no pressure
- Introductions to FCA-authorised firms
Chartered Financial Adviser
24 years in advice
Phillip Handley
Chartered Financial Adviser (LIBF), Adv DipFA
Arthur Browns, FCA regulated (FRN 825843)
- Chartered Financial AdviserLIBF, Adv DipFA
- Level 6 Pension TransfersSpecialist qualification
- 24 years in adviceMany years on DB transfers
- FCA regulatedArthur Browns, FRN 825843
Before you start
Three things to know first
We would rather you heard these from us at the start. They are why many people decide to keep their defined benefit pension, and why that is often the right outcome.
We do not give defined benefit pension transfer advice
Our chat is general information about how things work. We won't tell you whether a transfer is right for you.
The FCA's starting point is that a transfer is unlikely to be suitable
For most people, keeping a defined benefit pension is the better option.
Advice is required by law over £30,000
If your safeguarded benefits are worth more than £30,000, you must take advice from an FCA-authorised firm with the pension transfer permission before you can transfer.
Your free chat
In 15 minutes, you'll understand
Most people we speak to have never been through a pension transfer before, and the paperwork doesn't make it easy. The chat gives you the plain-English picture, so you can decide your next step with your eyes open.
What your transfer value really means
How a CETV is worked out, why it moves with gilt yields, and why a big number is not, on its own, a reason to transfer.
What you would be giving up
The guarantees in a defined benefit pension, and what they would cost to replace on the open market.
How the advice process works
The FCA's starting assumption, the £30,000 advice rule, how advisers are paid, and what to ask any firm.
How to stay safe
The warning signs of a pension scam, and how to check a firm on the FCA Register before you deal with it.
How it works
Three calm steps, at your pace
Arthur Browns may receive a fee from the firm we introduce you to if you become their client.
A free 15-minute chat
At a time that suits you
Phil explains how transfers and the advice process work, in plain English. No advice, no obligation, and no pressure to do anything.
You decide, in your own time
No deadline from us
Many people decide to leave their pension where it is, and that is often the right outcome. Free guidance from MoneyHelper is always there too.
An introduction, only if you want one
Only if you ask for one
If you want regulated advice and your transfer value is £50,000 or more, we introduce you to an FCA-authorised firm with the pension transfer permission. It explains its charges in writing first.
Is this for you?
Who we can and can't help
These are simple facts about our service, not a test of whether a transfer would suit you.
We can help people who
- live in the UK
- are members of a funded defined benefit pension, such as a private-sector company scheme or the Local Government Pension Scheme (LGPS)
- have not yet started taking that pension
- have a transfer value of £50,000 or more (or are about to ask for one)
We can't help if
- Your transfer value is under £50,000. We're not able to arrange an introduction, but MoneyHelper offers free, impartial guidance.
- You're in an unfunded public-sector scheme. NHS, Teachers', Civil Service, Armed Forces, Police and Firefighters' members can't transfer to a defined contribution pension. Find out why.
- Your pension is already being paid. Once a defined benefit pension is in payment, it usually can't be transferred.
- You live outside the UK. Our service is for UK residents only.
Both sides
What you would be giving up
A defined benefit pension is valuable. Before thinking about a transfer, it helps to see both sides clearly.
Keeping your DB pension
What it gives you
- A guaranteed income for life, however long you live
- Yearly increases that usually help protect against inflation
- Often a pension for your spouse, civil partner or dependants
- Protection from the Pension Protection Fund
- No investment decisions and no investment risk for you
Transferring out
What it could offer, and the risks
- More flexibility over when and how you take money
- Different options for passing money on when you die
- Your money is invested and could fall in value
- Your income is not guaranteed and could run out
- Ongoing charges for advice, investments and the plan
- A transfer cannot usually be reversed
Older personal pensions
Have a pension with a guaranteed annuity rate?
Some older personal pensions and retirement annuity contracts come with a guaranteed annuity rate (GAR), which can be far higher than rates available today. Phil can advise directly on pensions with guaranteed annuity rates through Arthur Browns, subject to suitability. Advice is chargeable.
A note from Phil
I'll explain it the way I'd want it explained to me
I've worked in financial advice for 24 years, and for many of them I advised people on defined benefit pension transfers. I know how the process works, what the regulator expects, and the questions people often don't think to ask.
Today I don't give transfer advice. I offer a free chat so you can understand the process properly, and then decide your next step with no pressure. Many people decide to keep their pension, and that's a perfectly good outcome.
Phillip Handley
Chartered Financial Adviser (LIBF), Adv DipFA
- Chartered Financial Adviser (LIBF)
- Diploma in Advanced Financial Advice (Adv DipFA)
- Level 6 Award in Pension Transfers
- Planning in Retirement (FPIR)
Plain-English guides
Understand your pension
- Defined benefit pensionsThe complete plain-English guide to DB pensions and transfers.Read the guide
- Final salary pensions explainedWhat a final salary pension is, how it is worked out and what it pays.Read the guide
- Guaranteed annuity ratesOlder pensions with a promised income rate, and why they can be valuable.Read the guide
- Guaranteed Minimum PensionContracted-out benefits, GMP equalisation and what they mean for you.Read the guide
- Public-sector pensionsWhy NHS, Teachers' and Police pensions can't transfer, and the LGPS can.Read the guide
- Illustrative examplesHypothetical case studies showing what a regulated adviser weighs up.Read the guide
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Questions
Questions people often ask
Can't see your question? Ask it on the call, or see our full questions and answers.
Prefer to talk now? Call Phil on 07753817459
Is the chat really free, and is it advice?
Yes, it is free and there is no obligation. It is general information about how defined benefit pensions, transfer values and the advice process work. It is not advice, and Phil won't tell you whether a transfer is right for you.
Arthur Browns may receive a fee from the firm we introduce you to if you become their client.
Do I have to take advice before I can transfer?
If your safeguarded benefits are worth more than £30,000, the law requires you to take advice from an FCA-authorised firm with the pension transfer permission before your scheme will release the money. The FCA starts from the position that a transfer is unlikely to be suitable for most people.
Can I transfer my NHS, Teachers’ or Police pension?
No. Unfunded public-sector schemes, including the NHS, Teachers', Police, Firefighters', Civil Service and Armed Forces schemes, can't transfer to a defined contribution pension. The Local Government Pension Scheme is funded and can. Read why.
What if my transfer value is under £50,000?
We can't arrange an introduction below £50,000, but MoneyHelper offers free, impartial guidance, and Pension Wise offers free appointments from age 50.
How do I get my transfer value?
Ask your scheme administrator for a cash equivalent transfer value (CETV). Most schemes give one free statement every 12 months, and it is guaranteed for three months. You don't need one to book a chat. More about transfer values.
Can Phil advise me directly on anything?
Yes, on pensions with a guaranteed annuity rate (GAR). Arthur Browns can advise on these directly, subject to suitability, and advice is chargeable. About GAR pensions.
Free, impartial guidance
You don't have to use us. Free, impartial help is available from:
- MoneyHelper, the government-backed money and pensions service
- Pension Wise, free guidance on your pension options from age 50
- The FCA Register, to check any firm before you deal with it
Watch out for pension scams
Be wary of cold calls, offers of "free pension reviews", promises of high returns or early access to your pension before age 55. Check the FCA's ScamSmart site before you act. We will never ask for your bank or pension login details.
Important: Arthur Browns Wealth Management Ltd (FCA 825843) does not give defined benefit pension transfer advice. The FCA starts from the position that a transfer is unlikely to be suitable for most people, and a transfer cannot usually be reversed. See Important information.