- P
- PCLS ‘pension commencement lump sum’
- This is the tax-free cash sum you can take when you start to access your pension. Normally it is capped at 25% of the overall fund value.
- Pension Pot
- This refers to the total amount of money you have in your pension. You can have more than one pension pot.
- Pension Sharing Order (PSO)
- This is an instruction from a court directing a pension scheme to transfer a portion of a person’s pension to the pension of a former spouse or civil partner, on divorce. In England a percentage is transferred, in Scotland a monetary amount.
- Pension Wise
- A government service which gives you free impartial advice on your options at retirement if you’re age 50 or over. A pension specialist will talk you through the options available.
- Pension transfer (TV)
- This is where you move your pension to a new pension provider. If your pension is a defined benefit pension with a value of at least £30,000 you must take regulated transfer advice, before the transfer can proceed.
- Personal Pension
- A type of defined contribution which belongs to you. It can be either a policy set up by you if you’re not employed and don’t have a workplace pension, or it can be a workplace personal pension you can be enrolled into whilst employed. This will also belong to you, but your employer will pay into it.
- Policy terms and conditions
- The general and special arrangements, provisions, requirements, rules and standards that form an integral part of the contract.
- Portfolio
- The range of investments you hold across different accounts.
- Projection
- A statement based on various assumptions which gives you an estimation of what your pension could be worth at a future date (normally the retirement age the pension is set up to).
- Protected retirement age (PRA)
- This is a right to take your pension earlier than the normal minimum pension age (which is currently age 55 but will increase to age 57 in April 2028).
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.