How we would calculate the value of your DB pension to add to the net-worth tracker is to take the annual benefit you will receive on retirement, multiply this by 25 and add that value to the sheet.

For example if you were to stop working now, at age XX you will get £5000 a year.  You multiply £5000 * 25 = £125,000.  This is the value you put in the tracker.

If you are due to receive a lump sum plus the yearly amount you would add the lump sum to the yearly amount *25 to give you the total.

This maths is based on the 4% guideline which is used to calculate how much you need to retire.  Find Alan’s article on the 4% guideline here