How are my pension savings valued each year?


  • Members
  • Pension regulation

If you are a member of a Defined Contribution pension scheme, the value of your pension savings (also called your Pension Input Amount) is the total of both you and/or your employer’s pension contributions made in the year.

If you are a member of a Defined Benefit pension scheme the calculation is more complicated. The increase in the value of your retirement benefits each year is your Pension Input Amount, and is used to calculate how much of your Annual Allowance is used up by the scheme that year. If you have a promotion or a significant salary increase you may be at risk of exceeding the Annual Allowance.