Part two of our helpful pensions glossary covers everything from L – Z. If you haven’t had a chance to take a look at part one, click here to brush up on your pensions terms from A-J, then get to grips with the second part in this Jones Hill double bill.
Lower Earnings Limit – This is the point at which your earnings will build up the right to state pension benefits.
Member – Different from an ‘active member’ of a plan, who is actively making payments, a ‘member’ is someone who is still entitled to benefits under their pension plan.
NIC – National Insurance Contributions are deducted from the income of all employees on a scale which is linked with income levels. You need 30 years of National Insurance Contributions in order to get a full State Pension on retirement.
Open Market Option – Buying an annuity from their own pension provider is not the only option for the retired, and more often that not it’s not the best option – we can compare rates and arrangements for other insurance providers and purchase the one that suits you best.
Preserved Benefits – These are classed as the benefits a pension scheme member has already earned when they stop making payments, or when their scheme closes. They are also known as frozen benefits, and they will be paid when the individual takes their benefits.
Redirecting payments – You can change the funds that future payments are invested in by redirecting your future payments. It won’t affect any payments that have already been invested, and many providers don’t charge for this service.
SIPPs – A self-invested personal pension gives the planholder maximum flexibility and choice with regards to their investments. It is best for those who are more comfortable with investment risk and they can be more expensive to run. SIPPs are also used for pension income drawdown contracts. Alternatives to SIPPs are SSAS - Small Self Adminstered Schemes. If you’re considering either, take professional, independent advice.
Tax Relief – Tax relief means that some of the money that would have been paid to HMRC will be paid into your pension plan instead, encouraging those saving for their retirement.
Upper Accrual Point – This is the maximum earnings that are used to build up the right to state pension benefits.
With-Profits Fund – If your pension plan contains this type of fund, your fund manager retains a percentage of the profits to supplement your investment earnings in the case of a bad year for returns. It helps to smooth out the instability of the stock market, but it can incur heavy penalties for those that cash in early., usually called a Market Value Reduction.
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Thank you so much for everything you've done. I'd hate to imagine when it would have got completed if you hadn't chased everyone involved.
JessicaExcellent, honest and fair advice given. Very competitive prices for mortgage and insurance policies. Would definitely recommend.
Sadie RI recommend Jones Hill very highly indeed. They are extremely professional, know their stuff, and give excellent advice based on current market conditions. They will advise a course of action which is in the best interests of the client, regardless of whether they themselves will benefit from it. Consulting them has saved us a huge amount of time and hassle.
BWA big thank you to Jones Hill. I have found your site very useful and appreciate your professional honest service. I can recommend you. Also I want to say thank you for the warnings posted on your site about Yardstick marketing. Be warned the following companies appear to be linked and personally I would avoid them; "Pension Matters Associates Ltd" get "YardStick Marketing" to get a pension valuation done for you, then they have "QuickDox" go to your home to get a copy of your passport and get you to sign 15 pages authorizing the transfer of your pension to "Advalorem Value Asset Fund", part of their "Green Church Pension Scheme" which is part of company called "5G" and so the fiddle continues..... Be Warned!!!! I also came across this; Make your own mind up: http://www.boiler-rooms.org/yardstick-marketing/ By the way there is no link between Jones Hill and the above. I am grateful to Jones Hill that it was brought to my attention via this site. Thank you again!! SJ
What a great company - helped with our mortgage initially but have also helped with getting the best out of our pensions too. I would (and do) highly recommend!
Louise P
