How to count a DB pension in a Net Worth calc?

[TinyAcorn]

I have a Defined Benefit pension which will pay out a lump sum and an annual amount (from 60yrs) following pretty simple calcs based on length of service.

I'm trying to do my first net worth calc for end of year 2018 for future tracking purposes and am struggling with how to count this into the mix.  Is it as simple as:

DB value = (projected annual pension*25) + projected lump sum

This would value the pot as direct replacement for direct contributory savings/investments following the 4% rule...  (I may be overthinking this simply because it looks to simple to be correct)

Any help greatly appreciated!

[Distant dreamer]

I’m not sure why I think this and apply to be corrected but I thought the standard way of valuing a DB pension was to multiply your projected annual figure by 20.

[PhilB]

It all depends what you intend to do with it!  You can't just pick a value for the DB, add it to your other investments and say 'I can retire when that's 25x expenses'.  If you are planning (and able) to take a transfer value and you have enough of your stash outside pensions to cover you until pension access age then you could get a transfer value and use that.  The transfer value will depend on many things, particularly how long it is until your standard pension age.
If you intend to actually leave the DB alone and draw it as a pension then I would suggest just splitting your stash in two.  A long term stash that needs to make up the shortfall (if any) between DB (and SP) and your desired spending level and a bridging fund to cover you for the DB and SP until they comes into payment.
If you just want a random number to use for fun then 20x is as good as any.  It is the value that HMRC uses in assessing a DB pension against the lifetime allowance - at the point that it comes into payment.  Obviously you would expect to discount that if the payment date is a long way in the future, but against that actual transfer values at close to retirement are currently much higher than 20x.

[highlandterrier]

Personally I use (30 * projected annual pension if I stopped working today). You could get an estimated transfer value to see what it is worth and use that if it's a private sector pension. My last ETV was more than the 30 times I use, so I feel comfortable using that figure. For me it's another asset that I could sell if I chose so I value as such.

[TinyAcorn]

Thank you all for your help.

@PhilB  In terms of planning I have several columns in my spreadsheet - one for projected DB pension income (from 60) as I plan to leave it in the scheme unless I get a great offer on transfer value, another for SIPP drawdown, and another for ISA investment income - each giving a projected income from different ages - complicated by my husband's SIPP and projected DC pensions thrown into the mix.  I'm happy with my approach for FIRE planning.

I was hoping to track one simpler value to give me a more 'snapshot' figure for how I'm doing year on year so wanted to get to a Net Worth equivalent figure and leaving the DB pension out of the mix doesn't feel right.  I'm not including my any equity in my house as I'm accounting for this by by not including mortgage payments in the FIRE expenses calc. as my plan includes paying it down before I FIRE.

I'll likely use the 20x as that doesn't seem unreasonable to guestimate as a transfer value (without being too optimistic)

[Kookaburra Risotto]

My annual statement gives a total value of accrued benefits to date. I have assumed that would be the right number to use (it's roughly the same as the figure I get if I use the calculations suggested up thread).