Pension Plan- An investment option for an income after retirement.

Investment Amount- The amount you invest in a policy Plan

Lumpsum- An amount of money that is paid/invested in one large chunk on one occasion and based on availability, rather than several smaller payments.

SIP- “Systematic Investment Plan”. It’s an investment strategy where a fixed amount is auto-debited from an investor’s account and invested at regular intervals.

Beneficiary (or Nominee)- The person/persons who benefit from the policy you take

Accumulation (or Investing) Period- The time period of your pension plan

Vesting Age- The age at which you start receiving a pension

Fund Value- The amount due at the end of your investing period

Annuity- A pension plan option that entitles you to a series of annual sums

Contributions- Money invested by you into your pension plan, it’s often referred to as ‘making a contribution’ or ‘making a pension contribution’.

Income drawdown- Sometimes referred to as flexi-access drawdown (or simply ‘flexible income’), this is essentially a way of taking the money you’ve built up directly from your pension pot, as and when you need it. The money you haven’t yet taken out stays invested, so it has the potential to fall as well as rise in value. Overall you could get back more money than you would from an annuity, but your money could also run out during your lifetime, leaving you with no further income.

Charges- There are certain charges you have to pay when you have a pension, which are usually taken at the time of investments. The charges are standard and nominal and will be levied by the relevant fund manager.