Defined contribution: an invested pot
A defined contribution pension builds an invested pot. Its value depends on money paid in and investment performance, and can fall as well as rise. These schemes can be workplace or personally arranged.
Defined benefit: scheme-based income
Defined benefit pensions normally describe an income calculated under scheme rules, commonly using salary and service. That annual income is different from the value of an invested pot.
Sources: GOV.UK: Types of private pensions
Label the figure before adding it
Imagine two fictional statements: one shows a pot of £18,000, the other shows an expected annual income of £1,200 at the scheme retirement date. Adding those numbers together produces £19,200, but it has no useful meaning: they measure different things. This is an illustration, not a retirement forecast.
In your notes, record the label printed beside the figure, the statement date and whether it is an estimate. Keep quoted transfer values separately too. The Passport totals only recorded defined contribution pots; it does not turn an income promise into a pot value.
If you are unsure, leave the type unknown
Ask the administrator whether the scheme is defined contribution, defined benefit or includes both elements. Copy their explanation into your own notes rather than deciding from the provider name alone.
For a decision about transferring or drawing a pension, use guidance or advice appropriate to your circumstances. This guide explains record types; it does not establish what your pension is worth today or what you should do with it.
Sources & review
- MoneyHelper: Defined contribution pension schemesChecked 2026-10-04
- GOV.UK: Types of private pensionsChecked 2026-10-04
Next scheduled review: 2027-04-03. Provider details can change sooner. Use the official website for the current contact route.
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