Jargon Buster

The world of financial services and pensions is often filled with complex jargon and “business-speak”. This tool provides plain-English explanations of jargon to make technical language clear and accessible to every audience.

For IFGL Pensions Customers only

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Salary sacrifice
An arrangement between you and your employer in which you agree to a reduction in salary or bonus in return for a benefit, which as a pension contribution from your employer which matches the salary/bonus you gave up.
Self-invested personal pension (SIPP)
A personal pension that offers a wide choice of investments and is designed for someone who wants to take an active role in how their pension contributions are invested.
Servicing Agent
A company or individual who provides financial advice, or assists with ongoing servicing of a policy. The company that is appointed as a servicing agent may differ from the original company or individual who recommended the policy.
Shares (or stocks)
A share is a small part of a company. When you buy shares you effectively become a part owner of the company. The share price can go up and down, depending on how well the company does and when the company makes a profit its directors may choose to distribute an income to the shareholders in the form of dividends.
State Pension Age
A type of occupational pension scheme limited to 11 members and typically set up by company directors. It allows a business to purchase its own premises and hold it within the pension scheme. Both employer and employee contributions can be paid and it is regulated by the pension regulator (TPR).
Stockmarket
The name given to exchanges where you can buy and sell shares in companies and other instruments. A stock exchange is also where companies can issue shares for sale.


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.