Consolidating old workplace pots or weighing up the value of a final salary pension are among the most significant financial moves you can make. Our dual-mode pension transfer calculator is designed to help you evaluate the potential value and implications of these moves, whether you are chasing lower fees or seeking investment flexibility.
What our pension transfer calculator can tell you
Because the logic for different pension types is fundamentally different, this tool provides tailored insights based on your specific scheme:
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For DC Pensions: It identifies the "Consolidation Bonus" - the extra money you could have at retirement simply by reducing your annual management charges.
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For DB Pensions: It provides a "snapshot" estimate of your Cash Equivalent Transfer Value (CETV) and the "Critical Yield" required to match your guaranteed benefits in a private pot.
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Fee Impact: It visualises the total money lost to fees over your remaining career.
How this calculator works
The tool uses two distinct calculation logics depending on your selection:
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Defined Contribution Logic: It compares the cost of multiple old pensions against a single, lower-fee scheme using the formula:
Projected Value = (Total Pot Value + Ongoing Contributions) X (1 + Growth Rate - Total Fees) compounded over Years to Retirement. -
Defined Benefit Logic: It estimates the lump sum value of a guaranteed future income by applying a transfer multiple (typically 20x to 25x based on latest estimates) to your annual benefit.
Why use this calculator?
A pension transfer isn't just about admin; it's about making your money work harder.
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Spotting Fee Leakage: In DC schemes, high fees compound over decades, eating away at your final pot.
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Assessing Risk: For DB schemes, the calculator helps you compare "Guaranteed Income" against "Investment Flexibility".
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Market Awareness: It accounts for current market sensitivity, including the impact of gilt yields and interest rates on transfer values.
Important things to keep in mind
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The £30k Rule: If your DB transfer value is over £30,000, you must seek independent advice by law.
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Safeguarded Benefits: If your pension has a Guaranteed Annuity Rate (GAR), transferring will likely mean losing a very valuable benefit.
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High-Risk Yields: If the "Critical Yield" required to match your DB benefits is over 5%, we flag this as a high-risk transfer.
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Interest Rates: Transfer values typically fall when interest rates rise; our tool reflects the current market conditions.
Transfer your pension today
Example calculations
Below you will find example calculation tables based on data produced by our calculator.
Example 1: DC Fee Consolidation
A saver with £150,000 across three pots finds a new provider that reduces their average fee by 0.35%.
|
Factor |
Current (Old Pots) |
New (Consolidated) |
Difference |
|
Starting Pot |
£150,000 |
£150,000 |
- |
|
Average Fee |
0.75% |
0.40% |
-0.35% |
|
Years to Retirement |
20 |
20 |
- |
|
Final Pot Value |
£343,150 |
£368,000 |
+£24,850 |
Example 2: DB Transfer Estimate (CETV)
A saver is offered a transfer value for their guaranteed annual income of £10,000.
|
Factor |
Calculation |
Estimated Value |
|
Annual Benefit |
£10,000 |
- |
|
Transfer Multiple |
22x |
- |
|
Estimated CETV |
£10,000 x 22 |
£220,000 |
|
Critical Yield |
Required Return |
5.2% (High Risk) |
What to do after running your calculations
This calculator is a diagnostic tool to help you understand the "Critical Yield" and "Fee Gaps". However, transferring a pension - especially a Defined Benefit one - is a complex legal process.
At Money Helpdesk, we can connect you with FCA-regulated specialists who can:
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Perform a Benefit Audit: Ensuring you don't lose GARs or other safeguarded perks.
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Provide Legal Sign-off: Necessary for all DB transfers over £30,000.
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Market Comparison: Comparing your current AMC against the best-performing modern SIPPs
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Oversee your transfer: They will guide you through the process from start to finish.
Ready to speak to an expert about your transfer options and take advantage of a free, no-obligation pension review? Get started here.
FAQs
DC transfers focus on reducing annual management charges (AMC) to increase the final pot value. DB transfers focus on trading a guaranteed lifetime income for a lump sum (CETV).