What is your final salary or career-average pension actually worth as a capital sum? Enter the annual pension it pays, any separate lump sum and a valuation factor to estimate its capital value — for tax planning or comparing a transfer.
Income × factor + lump
A defined benefit (DB) pension — final salary or career average (CARE) — pays a guaranteed, usually inflation-linked income for life. Because there's no pot of money, valuing it means converting that income into a capital figure using a multiplier. The right multiplier depends on why you're valuing it:
Knowing the capital value helps with the pension Annual Allowance (the ×20 figure counts toward your £60,000 limit each year it grows), divorce settlements, and comparing a guaranteed DB income against a defined-contribution pot. To compare against buying an income with a pot, see the annuity calculator, and for tax-free cash the tax-free lump sum calculator.
Multiply the annual pension by a factor: ×20 for HMRC tax, or a CETV (often 20–40×) for a transfer. The CETV depends on your age, gilt yields and indexation and is the only figure you can act on.
Use ×20 for HMRC and Annual Allowance calculations. For a transfer-value idea, 25–40× is more typical — but only your scheme's actual CETV is meaningful.
Usually not — a DB pension gives a guaranteed, often inflation-linked income for life that's hard to replicate. Transfers over £30,000 legally require regulated advice. This tool is for understanding scale, not a recommendation.
Yes — the yearly growth in your DB pension is valued (×20) and counts toward your £60,000 Annual Allowance. A big pay rise or extra service can create a large pension input amount.
