Start with what the figure measures
A pension pot is an amount of pension savings. Annual pension income is an amount paid, promised or estimated for a year. The two figures have different units and should not be added together. GOV.UK distinguishes defined contribution pots from defined benefit arrangements that promise a yearly amount under scheme rules.
Before recording a number, copy its label and the date or period beside it. A figure shown in pounds is not automatically a cash balance: it might describe yearly income, a lump sum or something else. Ask the scheme if its wording is unclear.
Sources: GOV.UK: Types of private pensions
A pot value is not a promised yearly payment
In a standard defined contribution arrangement, payments build pension savings that are invested. MoneyHelper explains that the value can rise or fall and that statements can also show estimated retirement income. A recorded pot value belongs with its valuation date; it is not a guarantee of a particular future income.
For example, fictional paperwork might show a pot value of £24,000 on a named date and an income illustration elsewhere. Keep those as separate entries with their original labels. This example is not an estimate of what a £24,000 pot would pay.
Annual income needs its scheme context
A defined benefit pension normally provides a regular retirement income based on scheme rules, including pay and service. Its paperwork can describe income you have built up or a projection. Ask what the quoted figure covers, when it would start and whether it assumes continued membership.
A fictional statement saying “£2,400 a year at the scheme’s normal pension age” is describing a yearly income figure, not a £2,400 pot. Preserve the age and other qualifications. Do not infer a monthly take-home amount or compare that income directly with a cash valuation.
Keep estimates and transfer values separate
MoneyHelper explains that a statement can contain an estimate of retirement income. Label an illustration as an estimate and retain its assumptions rather than treating it as a confirmed payment. Check the date and ask whether the figure describes benefits already built up or a projected future outcome.
A defined benefit statement might also include a cash equivalent transfer value, or CETV. That is a transfer figure, not the annual pension income. Its presence is not a recommendation to transfer. Read the scheme’s explanation and keep any validity date with the quotation.
Use separate labels in your pension list
Build a record that another person could read without guessing the units. A dated pot valuation, a yearly benefit and a projected income need separate descriptions. If you cannot classify a figure, mark it unknown and keep the question for the administrator.
The browser Passport’s pot field is for a documented defined contribution pot, with a provider, statement date and evidence note. Do not put defined benefit annual income or a transfer quotation into it. All Pensions organises your notes; it does not verify values, convert a pot into income or assess transfer suitability.
- Pot value: amount, valuation date and statement source.
- Annual income: amount per year, expected start and scheme qualifications.
- Illustration: estimated amount, assumptions and illustration date.
- Transfer quotation: original label and any validity date.
Sources & review
- GOV.UK: Types of private pensionsChecked 2026-10-04
- MoneyHelper: Defined contribution pension schemesChecked 2026-10-04
- MoneyHelper: Defined benefit pension schemesChecked 2026-10-04
- MoneyHelper: Pension statements explainedChecked 2026-10-04
Next scheduled review: 2027-01-04. Provider details can change sooner. Use the official website for the current contact route.
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