Glossary

Annuity – another word for income, generally associated with income from pension funds.

Annuity rate – the rate that determines the level of income that your pension will provide. Different pension providers offer different annuity rates in much the same way that banks and building societies offer different interest rates for savers.

Escalation – the rate at which you would like your annual pension to increase. The higher you would like your pension to increase by, the lower your initial pension will be.

Fixed Annuity – an annuity that remains at the same level until it ends.

Guarantee Period – the period of time from beginning receipt of your pension that the chosen provider will guarantee to continue to pay your pension, even if you die. You can select a guarantee period of 5 or 10 years, but any guarantee selected will have an impact on the pension you receive.

LPI Annuity – an annuity which increases by the Limited Price Index. This is the same as an RPI (see below) but has a cap of 5%.

Other Health Issues – Are there lifestyle issues that you can tell us about, such as smoking, which could enhance the pension you are entitled to.

Medical History – Tell us about all the illnesses you have suffered and Medication you take. This could increase the level of pension you are entitled to.

RPI Annuity – an annuity which increases by the Retail Price Index, which is the Governments general measure of inflation.

Single or Joint Life Annuity – You can either have an pension that lasts for your lifetime only or a joint life annuity that continues after you die for your spouse. If you select a joint life annuity, this can impact on the pension you receive.