This page will act as a dictionary for all the different pension terms you may hear about like:
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- Basic State Pension
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- benefit crystallisation event
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- Consumer Prices Index
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- money purchase annual allowance
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- National Insurance contributions
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- pay as you earn
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- pension commencement lump sum
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- per annum
- Annum is just a fancy way of saying year.
- per annum
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- Retail Prices Index
- Consumer Price index
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- State Pension age
- uncrystallised funds pension lump sum
- Lifetime Allowance
- This is the amount you are allowed to have in your pension funds before you are penalised with the Lifetime Allowance charge. It is currently £1,030,000 and it is planned to increase with inflation over the next few years.
- Pension Freedoms
- This is the phrase used in the media to describe the increased flexibility of pensions since George Osborne changed the rules in 2015.
- Defined Benefit
- Read full guide here.
- Defined Contributions
- Read full guide here.
- SIPP
- SIPP is short for self invested personal pension. They give a lot more options in what your pension can be invested in. Whilst this can be good, it has led to a number of scam investment schemes. Tread very carefully if you are considering a SIPP. Read more information here.
- SSAS
- Annual Allowance
- Workplace pension
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