Final Salary Pension Calculator: Estimate Your DB Pension
Estimate your defined benefit (final salary) pension based on your years of service, final salary and accrual rate. Includes lump sum and CETV transfer value estimate.
8 min readUpdated April 2026
A final salary pension (also called defined benefit or DB) pays you a guaranteed income for life based on your years of service, your final or career-average salary, and the scheme's accrual rate. Most private-sector DB schemes have closed to new entrants, but they remain widespread in the public sector and some legacy private schemes.
Use the calculator below for a rough estimate of your annual pension, lump sum entitlement, and an indicative CETV (Cash Equivalent Transfer Value) if you're considering transferring out.
Final Salary Pension Calculator
Estimate your DB pension and CETV.
Your details
150
£15k£200k
1/40 (rich)1/120 (lean)
Your DB pension
Annual pension
£0
£0/month
Indicative CETV
£0
~25-30x annual pension
Indicative only. Real CETV depends on gilt yields, scheme funding, and your age — can vary 30%+ from this estimate. DB transfers above £30k require regulated advice.
How DB pensions are calculated
The standard formula is: annual pension = years of service × final salary × accrual rate. Common accrual rates in the UK:
1/60th: Generous — common in NHS, civil service, teachers
1/80th: Standard — common in old private-sector schemes
1/120th: Less generous — some career-average schemes
CETV warning: The CETV estimate here is approximate (25-30x annual pension). Real CETVs vary widely with gilt yields and scheme funding. Transferring out of DB above £30k requires regulated advice — almost always best to keep DB benefits unless you have very specific reasons.
Should you transfer your DB pension?
The vast majority of advisers recommend NOT transferring out of a DB scheme. You'd be giving up a guaranteed inflation-linked income for life. The FCA requires regulated advice for any transfer above £30,000.
Frequently Asked Questions
Annual pension = years of service × final salary × accrual rate. For example: 30 years × £40,000 × 1/60 = £20,000/year. Schemes vary by accrual rate and definition of 'final salary'.
CETV multiples range from 18x to 35x annual pension, depending on gilt yields, scheme funding and member age. Late 2026 averages are around 25-28x for healthy schemes.
Almost always no. You'd give up guaranteed inflation-linked income for life. The FCA requires regulated advice for transfers above £30,000, and most regulated advisers will recommend against transferring.
Final salary uses your salary at retirement (or near it). Career average revalued earnings (CARE) uses an average of your salary over your career, revalued for inflation. Most public sector schemes moved to CARE in 2014-15.
Usually yes, by 'commuting' some pension for a tax-free lump sum. The commutation rate varies by scheme; typical is 12:1 (giving up £1 of pension for £12 of lump sum). Often poor value vs keeping the income.
Most public-sector DB pensions increase by CPI each year, capped or uncapped. Many private-sector schemes increase by capped CPI (e.g. CPI capped at 2.5% or 5%).
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