Pendleton has retired from competitive cycling, bowing out with a silver medal in front of a home crowd at London 2012, after losing her sprint title to Australian rival Anna Meares in the Velodrome.
Hoy left the Olympic stage with his sixth gold medal, winning a thrilling keirin battle to become Britain's most successful ever Olympian.
But Pendleton is sure there is plenty more talent within Team GB to take to Rio in 2016, including the likes of Hoy's successor Jason Kenny, Pendleton's team sprint partner Jessica Varnish, and Laura Trott, who picked up omnium gold yesterday.
"There's also lots of people you don't even know yet coming through who have shown immense potential already," said the 31-year-old.
"They are just waiting for a space to free up so that they can step into the team and really shine.
"We have been really careful to create a system that is hopefully going to continue after the likes of Sir Chris and myself have gone.
"In order to be on the team you have to be gold medal standard.
"I think success breeds success. The youngsters coming through know what it takes and what they have to do to achieve that."