Pension Offsetting Calculator
Work out roughly how much cash or housing equity is equivalent to a share of a pension in a divorce settlement, and see the adjustments behind the figure.
Your details
The Cash Equivalent Transfer Value from the pension provider. Ask for it in writing — they must supply it, usually within three months.
The percentage a pension sharing order would have given you. Half is a common starting point, not a rule.
Most pensions cannot be touched before 55, rising to 57 in April 2028. Cash today is worth more than the same sum locked away for a decade.
Pension income is taxable; housing equity is not. A quarter of the pot is normally tax free, so only three quarters is affected.
Money you cannot spend, cannot borrow against and which depends on future investment returns is worth less than money in your hand. Commonly 10–25%.
Your results
Equivalent cash or equity today
£56,969
A 15% discount applied for risk and inflexibility.
- Your share of the pension (CETV)50% of £200,000.
- £100,000
- After tax on future incomeThree quarters taxed at 20%.
- £85,000
- After waiting 12 yearsDiscounted at 2% a year above inflation.
- £67,022
- Plausible rangeMoving the risk discount 10 points either way.
- £50,266 – £63,671
- Offset as a share of the full CETV
- 28%
This calculator is for educational purposes only and does not constitute financial or legal advice. Offsetting figures are negotiating positions, not settled law, and any figure produced here should be checked with a qualified financial adviser and your solicitor before you rely on it.