- D
- Death Benefit
- This is the amount paid to your beneficiaries after your death, from your pension. It can be paid in a single lump sum form, or in instalments, if your beneficiaries opt for a drawdown dependants’ pension.
- Defined Benefit Pension
- A type of pension which gives you a promised amount of pension each year in retirement. The benefit is defined at outset. These types of pensions can offer valuable guarantees, sometimes referred to as “safeguarded rights”. The amount of pension you receive is usually based on how long you were a member of the scheme and your salary.
- Defined Contribution Pension
- A type of pension where the income you receive in retirement will depend on how much you’ve paid in (either yourself, or an employer) and how the investments have performed. There are no guarantees with this type of pension. This is the opposite of a Defined Benefit pension – in this case the contribution is defined, not the benefit.
- Discretionary Pension
- Refers to pension schemes where the trustees can determine who the pension is paid to when the member dies.
- Discretionary Trust
- Also known as a Flexible trust. A trust where beneficiaries can be amended once named and the trustees have discretion over which beneficiaries they choose to distribute trust fund monies. It is possible to nominate a Discretionary Trust to receive your pension death benefits.
- Dividend
- A type of income that can be paid to someone who holds an investment. Dividends are payments a company can make to its shareholders if it makes a profit.
- Double Taxation Agreements (DTA)
- If you have income from a source in one country and are resident in another, you may be liable to pay tax in both countries under their tax laws. Double taxation agreements are tax treaties between two or more countries and are designed to reduce the risk of you paying double tax on the same income.
- Drawdown
- This is a flexible way of accessing your pension. After you take your tax-free cash sum, the rest of your pension fund is available for you to take income as and when required, in the form of income drawdown payments.
Is there jargon we use that you don’t fully understand? Please email us at info@ifglpensions.com and we will add the word to our Jargon Buster.