Do you have a final salary pension scheme and recently received a Cash Equivalent Transfer Value (CETV)? Accepting the lump sum offer may or may not be the right decision for you.
What is a Cash Equivalent Transfer Value (CETV)?
A Cash Equivalent Transfer Value (CETV) is a lump sum offered to people with a final salary pension scheme, sometimes called a defined benefit (DB) pension. The lump sum may be offered and can only be accepted if you agree to give up your future pension claims.
The figure will be calculated based on the projected cost to purchase the same pension scheme income, predominantly based on your health, age, inflation rate and final salary pension entitlement. The money is then used as your retirement income, rather than receiving a pension. The process is also known as a final salary pension transfer.
Transfer incentives
There are incentives to accepting a Cash Equivalent Transfer Value offer, but these benefits will depend on the exact terms and conditions of your current defined benefit pension. Some defined benefit pensions do not offer favourable terms to surviving spouses, partners, and dependants if you die. For example, the amount they receive can be significantly reduced to around 50% - or they may not receive anything. You should consult your pension terms for details.
On the other hand, accepting the Cash Equivalent Transfer Value may provide more financial security to your loved ones in the event of your death. If you have serious health concerns, you may want to consider the Cash Equivalent Transfer Value.
There are other incentives to a Cash Equivalent Transfer Value, which arise from personal situations. For that reason, it’s best to speak directly with a professional financial adviser.
Transfer risks
The biggest risk of opting for a Cash Equivalent Transfer Value is that you lose the prospect of a guaranteed income for the rest of your life. Your future finances may be reduced by leaving the final salary pension scheme.
Once you decide to accept the lump sum and transfer out of the final salary pension, the decision is final. You cannot change your mind and transfer back. Final salary pension transfers are an important decision and it’s advised to consult with a finance professional before making your move.
TRANSFERRING OUT OF A FINAL SALARY SCHEME / DEFINED BENEFIT SCHEME IS UNLIKELY TO BE IN THE BEST INTERESTS OF OR BE SUITABLE FOR MOST PEOPLE.
Pension transfer scams
Pension transfer scams do exist. If you have received a CETV offer, you should confirm the offer is genuine by contacting your pension provider. Do not use the contact details listed on the CETV documentation. Instead, contact your pension provider using their official details, sourced from other letters or online.
MEET OUR Director/Wealth Manager
Aman Mashiana
Aman Mashiana is a strategic wealth management professional with more than 15 years’ experience building and leading advisory practices, managing substantial client portfolios, and delivering sustainable revenue growth in competitive financial markets.
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Our initial conversation is entirely exploratory and comes at no cost to you. It’s simply a chance to get to know each other. We’ll discuss your current financial picture, what you hope to achieve, and how we might be able to help. You won't need to sign anything or make any big decisions on day one.
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Absolutely. It's incredibly common to lose track of old workplace pensions over time. We can help you trace your scattered accounts, review their current performance and fees, and—if it makes financial sense—consolidate them into a single, high-performing, and easy-to-manage retirement plan.
We don't believe in cookie-cutter portfolios. We take the time to deeply understand your time horizon, your specific life goals, and your personal comfort level with market volatility. From there, we build a diversified portfolio designed to grow your wealth steadily while keeping your risk well within your comfort zone.
Yes. Making money on investments is only half the battle; keeping it tax-efficient is just as important. We actively structure your wealth to minimize Income Tax, Capital Gains Tax, and Inheritance Tax, ensuring more of your hard-earned money stays with you and your loved ones.
Tax planning, estate planning & Inheritance Tax planning are not regulated by the Financial Conduct Authority.
Not at all. We believe great financial planning should be accessible. Whether you are just starting to build your assets, navigating a major life transition, or managing multi-generational wealth, we tailor our advice completely to your current situation and future goals.
Our initial conversation is entirely exploratory and comes at no cost to you. It’s simply a chance to get to know each other. We’ll discuss your current financial picture, what you hope to achieve, and how we might be able to help. You won't need to sign anything or make any big decisions on day one.
We want to make managing your wealth as convenient as possible. We are happy to meet face-to-face at our office, or we can host a secure virtual meeting via video call (such as Microsoft Teams or Zoom) if that fits better into your busy schedule.
We believe in absolute fee transparency, meaning we agree on all costs upfront before any work begins. Depending on the complexity of your needs, our fees may be structured as a transparent percentage of the assets we manage, a flat fixed fee for a specific project, or an hourly rate. There are never any hidden costs or surprise bills.
Absolutely. It's incredibly common to lose track of old workplace pensions over time. We can help you trace your scattered accounts, review their current performance and fees, and—if it makes financial sense—consolidate them into a single, high-performing, and easy-to-manage retirement plan.
We don't believe in cookie-cutter portfolios. We take the time to deeply understand your time horizon, your specific life goals, and your personal comfort level with market volatility. From there, we build a diversified portfolio designed to grow your wealth steadily while keeping your risk well within your comfort zone.
Yes. Making money on investments is only half the battle; keeping it tax-efficient is just as important. We actively structure your wealth to minimize Income Tax, Capital Gains Tax, and Inheritance Tax, ensuring more of your hard-earned money stays with you and your loved ones.
Tax planning, estate planning & Inheritance Tax planning are not regulated by the Financial Conduct Authority.
