State Pensions: this is a contribution-based benefit. The amount of state pension you receive depends on your National Insurance contribution history. The maximum a person can receive is £119.30 a week. It is given to anyone who has reached the State Pension Age, which is presently 65.

For further information please refer to: https://www.gov.uk/state-pension/overview

Tax free cash: when you start drawing benefits, you may be able to take part or all of your pension benefits as a tax-free lump sum. In a DC scheme, this is normally limited to 25% of the value of your pot. In a DB scheme, this is determined by the scheme rules.

For further information please refer to: http://www.pruadviser.co.uk/content/knowledge/technical-centre/pension_commencement_lump_sum_tax_free_cash/

Defined ambition: a pension plan proposed by government that has features of both a defined benefit and a defined contribution pension. It is aimed at providing greater certainty than DC pensions but at a lower cost volatility than the DB schemes.

For further information please refer to: http://www.pwc.co.uk/finance/pensions/defined-ambition-the-future-of-pensions.html

Lifetime Annuity: a fixed sum of money paid to someone each year, typically for the rest of their life.

For further information please refer to: http://www.investopedia.com/terms/a/annuity.asp

Auto – enrollment: a law established under the Pensions Act 2008 where every employer in the UK must put certain staff into a workplace pension scheme if they: aged between 22 and State pension Age, and earn more than £10,000.

For further information please refer to: http://www.thepensionsregulator.gov.uk/en/employers

Defined benefit: a type of pension plan in which an employer/sponsor promises a specified pension payment, lump-sum (or combination thereof) on retirement that is predetermined by a formula based on the employee’s earnings history, tenure of service and age, rather than depending directly on individual investment returns.

For further information please refer to: https://www.moneyadviceservice.org.uk/en/articles/defined-benefit-schemes

Defined contribution: a retirement plan where regular contributions are made either by the employer or the individual on a regular basis. The value of the fund is a combination of these regular payments and any investment returns. Future benefits fluctuate on the basis of the investments.

For further information please refer to: https://www.moneyadviceservice.org.uk/en/articles/defined-contribution-pension-schemes

Pensionable service: The period of service, expressed in a yearly figure, for which a worker has established pension credits for a pension plan

For further information please refer to: http://www.mycompanypension.co.uk/What-Counts-Towards-Pensionable-Service-Active-Members-DB

Pensionable remuneration: Pensionable salary is used within the definition of final pensionable salary when determining benefits, as defined in the rules of the scheme.

For further information please refer to: http://www.wiltshirepensionfund.org.uk/employer-area/employers-guide/pension-remuneration-final-pay.htm

Accrual rate: The accrual rate is the proportion of your final salary that you get for each year you are a member of the scheme. Accrual rates are usually expressed as fractions (1/60th or 1/80th is common) or sometimes as a percentage (e.g. 1/60th equals 1.67%).

For further information please refer to: http://www.mycompanypension.co.uk/What-is-an-accrual-rate-Factsheets

Capped drawdown:  pensioners were limited in terms of how much they could withdraw from their pensions annually. The Government’s Actuary Department (GAD) came up with a number every year based on several factors, including cost-of-living and inflation. Pension savers could then take a certain amount based on that figure. Before 2014, they could withdraw 120% of the GAD number; that amount was raised to 150% in 2014.

For further information please refer to: https://www.moneyadviceservice.org.uk/en/articles/capped-drawdown

Flexi-access drawdown: a person can access any amount up to the full fund size can be taken at any time.

For further information please refer to: https://www.pru.co.uk/pensions-retirement/planning/retirement-products/drawdown/

Uncrystallised funds pension lump sum: Each time you take an UFPLS from your pension, 25% will be tax free and the rest taxed as income. The member can take as much or as little as they like from the fund as an UFPLS.

For further information please refer to: http://www.pensionsandannuities.co.uk/Uncrystallised_funds_pension_lump_sum.htm

Dependant: A person who relies on another for financial support. This is usually someone who you are married to or your civil partner or another family member.

 A child of the member is a dependant of the member if the child

• has not reached the age of 23, or
• Has reached the age of 23, and in the opinion of the scheme administrator, was at the date of the member’s death dependent on the member because of physical or mental impairment.

For further information please refer to: http://www.mycompanypension.co.uk/My-Dependants-Active-Members-DB

Nominee: this is a person nominated to get money from your pension when you die. The person you have nominated pays tax when they access the funds.

For further information please refer to; http://adviser.royallondon.com/technical-central/pensions/death-benefits/nominee-and-successor-flexi-access-drawdown/

Successor: upon death of a member, he/she will nominate a beneficiary to take over their pension pot. Upon death of that beneficiary, they will nominate a successor to take over the funds.

For further information please refer to; http://adviser.royallondon.com/technical-central/pensions/death-benefits/nominee-and-successor-flexi-access-drawdown/