Glossary · UK
What is Cash Equivalent Transfer Value (CETV)?
The lump-sum value a defined benefit scheme will offer if you transfer it to a DC pension.
Full Definition
A Cash Equivalent Transfer Value is the actuarially-calculated capital sum a defined benefit (final salary or career average) pension scheme will pay if you choose to transfer your benefits out to a defined contribution arrangement. Transfers above £30,000 legally require regulated financial advice. CETVs reflect long-term gilt yields — higher yields generally mean lower CETVs. Transferring forfeits guaranteed inflation-linked income for life, so the FCA treats DB-to-DC transfers as unsuitable by default. CETVs are guaranteed for three months from the calculation date.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.