2025 annual pension illustration error

We’re very sorry. We provided incorrect illustrations to some customers in 2025.

You were affected if

We produced your annual pension illustration between 13 March and 19 December 2025 and when we produced it you were invested in our Navigator Pension or the Octopus Defensive Fund within your Self-Drive Pension.

In the ‘How we worked out this estimate’ section of your illustration it says “The Octopus Defensive Fund – Our Careful Defensive approach will grow by 6% before inflation each year.”

What we did wrong

We worked out your estimated pension benefits retirement based on the Octopus Defensive Fund growing by 6% before inflation each year.

We should have used a rate of 2%.

This means we over-stated your estimated pension pot, income and tax free cash.

What difference this made

If you have a small amount of your pension invested in the Octopus Defensive Fund and are close to your chosen retirement age, this will have made a small difference to your illustration.

If you have a large amount of your pension invested in the Octopus Defensive Fund and have many years to your chosen retirement age, this will have made a larger difference to your illustration.

Remember, the value of your pension can go up and down, you could get back more or less than our estimates. Tax depends on your individual circumstances and the regulations may change in future.
You normally need to be 55 (rising to 57 from 2028) to access your pension.
You can only take your money from our pension as a single lump sum, with 25% of it tax-free. To take your pension using drawdown or another way, you’ll need to transfer it to another provider at retirement.

How we’ve put this right

Your 2026 annual pension illustration shows the correct and current estimate for your pension pot. Please use this to guide any decisions about your pension, not the 2025 illustration.

You’ll find copies of both illustrations in your documents in Online Service.

If you’d like to talk to us about this, or if you made a decision about your pension as a result of your 2025 illustration that you want to discuss, please get in touch:

Call us on 0345 28 88 88. We’re here 8am – 9pm weekdays and 9am – 6pm Saturdays.

Questions and answers

How can I take my pension benefits?

With an Octopus Money Direct pension, you can only take your pension as one lump sum, with 25% tax-free. To take it via drawdown or another way, you’ll need to transfer your pension to another provider. We won’t charge you to transfer.

Can I get advice on my pension options?

We can’t give you financial advice, however, Octopus Money (our parent company) offers expert 1-to-1 financial planning and advice. Find out more (additional charges may apply).

The Government’s MoneyHelper service also provides free, impartial guidance. They have a dedicated pensions and retirement service called Pension Wise.

What is a Statutory Money Purchase Illustration (SMPI)?

A Statutory Money Purchase Illustration or ‘SMPI’ is the annual estimate of what your pension pot might be worth at your chosen retirement age and the income it might provide.

Does this mean I’ve lost money?

No. Your annual pension illustration is an estimate of what your pension pot might be worth in the future, and what income it might provide. It’s based on a set of assumptions, and is not guaranteed. It doesn’t affect the performance of your pension investments.

You can keep track of the value of your pension in Online Service, the app or your regular statements.

Why does the estimated value of my pension change each year?

Your annual illustration is based on factors including; the current value of your pension pot, regular payments being made, your chosen retirement age, which funds your pension is invested in and our charges.