Annuity
An annuity is a type of insurance policy that provides a regular income in exchange for a lump sum.
Asset Allocation
Asset allocation ensures that an investment portfolio holds a balanced range of different investments such as equities, gilts, property and bonds to protect against any reduction in value of any one or more asset class. The asset allocation will be planned to match the investor’s investment outlook.
AVCs - Additional Voluntary Contributions
A pension top-up for an occupational pension. You pay contributions into an AVC scheme run by your employer to increase the size of your fund.
Basic state pension
This is the pension you will receive from the government as a result of paying national insurance (NI) contributions throughout your working life.
Capital gains tax (CGT)
Tax paid on any increase in the value of your assets that you benefit from. For example, selling shares for more than you paid for them will involve paying some capital gains tax. You receive an annual allowance for capital gains and you only pay CGT on any gain over this amount.
Child Trust Fund The Child Trust Fund (CTF) is a long-term savings and investment account for children. The government has introduced the CTF to ensure a child has savings at the age of 18. |
