What is a Transfer Value Factor (TVF)?

The TVF is your Cash Equivalent Transfer Value (CETV) divided by your annual DB pension income. A TVF of 20 means the transfer value is 20 times the pension you give up. TVFs of 15–22 are typical in 2025/26 following interest rate rises.

What is the HMRC critical yield?

The critical yield is the investment return required on the transferred pot to replicate the income you would have received from the DB pension. If the critical yield exceeds around 7–8%, a transfer is generally difficult to justify on financial grounds alone.

Is regulated advice required for a DB transfer?

Yes. Any defined benefit pension with a value over £30,000 legally requires advice from an FCA-authorised Pension Transfer Specialist (PTS) before it can be transferred. This is a legal requirement under FCA rules.

What is the break-even age?

The break-even age is when a transferred pot (invested and drawn down) would theoretically run out compared to the guaranteed DB pension continuing for life. If you live beyond the break-even age, the DB pension would have paid more in total.

Can I transfer my DB pension to a QROPS?

Yes, if you are permanently resident outside the UK, you may be able to transfer your DB pension to a Qualifying Recognised Overseas Pension Scheme (QROPS). This requires regulated advice and careful attention to HMRC's Overseas Transfer Charge rules.

Tools · UK Pensions

DB Pension Transfer Value Calculator

Calculate your Transfer Value Factor (TVF), HMRC critical yield, and break-even age for a defined benefit pension transfer — with a DB vs transfer comparison grid.

Scheme Details

Annual DB pension income (£/year)

Cash Equivalent Transfer Value (£)

Current age

Target retirement age

Pension escalation rate (% / year)CPI/RPI-linked or fixed — check scheme rules

20-year gilt yield (%) — reference rate

State Pension (£/week)Full rate 2026/27: £241.30/week

Assumed investment return on transfer (%)Used for break-even calculation only

Transfer Value Factor

20.0×

Typical TVF

HMRC Critical Yield2.28%

Break-even age101

Years in retirement (to age 90)25 years

DB pension income£20,000

State pension (annual)£12,547.6

Keep DB vs Transfer

Factor	Keep DB	Transfer to SIPP
Income certainty	✓ Guaranteed for life	✗ Investment-dependent
Longevity risk	✓ None — scheme pays	✗ Could run out
Inflation protection	✓ (if CPI/RPI-linked)	Variable
Flexibility	✗ Fixed income	✓ Flexible drawdown
Death benefits	Spouse's pension only	✓ Full pot pre-75
Portability / QROPS	✗	✓ Can transfer to QROPS
IHT efficiency	Scheme-dependent	✓ Outside estate (for now)
Insolvency risk	PPF backstop (90%)	None (your pot)

Critical yield 2.28%: This is a relatively low critical yield. A diversified investment portfolio has historically achieved returns above this level over the long term, though past performance does not guarantee future results.

Important: Defined benefit pension transfers with a value over £30,000 require regulated advice from a Pension Transfer Specialist (PTS) — this is a legal requirement. This calculator provides illustrative analysis only and is not financial advice. The suitability of a transfer depends on many personal factors beyond these numbers.

Talk to a qualified DB transfer specialist

A defined benefit transfer is one of the most significant financial decisions you can make. Our advisers are qualified to guide you through the full process.

DB Pension Transfer Value Calculator

Keep DB vs Transfer

Talk to a qualified DB transfer specialist

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