Pension Transfer Analysis Report (TVAS)

If you have a final salary pension which is worth above £30,000 then you will need a Pension Transfer Analysis (TVAS) Report. This will help you decide whether a transfer of benefits from your existing scheme to an alternative arrangement would be appropriate or not.

Can I transfer my pension without a TVAS report?
If your Cash Equivalent Transfer Value (CETV) is below £30,000 then you don’t need a TVAS report. If it is below, you cannot transfer unless you have one.
What is the main reason for a TVAS report?
Its to make sure that if you do transfer your pension, you will not run out of money during retirement. Transferring your final salary pension means you will lose your guaranteed benefits and you will be dependent on market performance, so the advice can only be given if you understand the risks and are happy with a variable outcome.
Why does a TVAS report compare my pension to an annuity?
This is a question which has been raised for a long time, with plans to completely restructure how the report is done. Nobody ever transfers their final salary pension to buy an annuity, and especially not based on today’s rates. The process is forever changing so whatever you are recommended now may change in the future.

Critical Yield

This is the calculation in the TVAS report which shows you the annual growth rate (Critical yield) required to match the benefits that your existing scheme gives to you.

Benefits

It will compare all the different benefits your existing scheme offers to the alternative arrangement recommended, including death benefits, age, health issues, income requirements and so on.

Verdict

They will either recommend you transfer your pension or not. It’s impossible to know whether it’s in your best interest or not unless your pension is fully analysed against what you want. Each scheme has different increases and transfer values. If you wanted to receive the advice you would need a transfer value within the last 90 days.
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