Arrow Financial Services

Jargon Buster

Jargon Buster



Results for letter: D


DEATH AFTER RETIREMENT BENEFITS

The pension and lump sum paid to the deceased member’s spouse and/or other dependents where death occurs after retirement.

DEATH IN SERVICE BENEFITS

The pension and lump sum paid to the deceased member’s spouse and/or other dependents where death occurs while still working for an employer and before normal retirement date.

DEED OF COVENANT

An agreement in a deed to transfer income from one person to another in a tax efficient way.

DEFINED BENEFIT SCHEME

Also known as a Final Salary Scheme. This is the traditional form of company or occupational pension in which your pension is calculated as a proportion of your salary in the last few years of work. The proportion you receive depends upon how many years you have been in your company scheme.

DEFINED CONTRIBUTION SCHEME

Also known as a Money Purchase Scheme. A pension scheme where the amount of a member’s retirement benefit depends on the amount of contributions paid into the scheme by or for the member. Either the employer or the policyholder decides the rate of contributions.

DISCOUNTED RATE

A guaranteed reduction on the lender’s variable interest rate. It is usually only available for an agreed period of time, after which the interest rate reverts to the lender’s variable rate. Early repayment charges may apply on these types of arrangements.

DISTRIBUTION

Payments made to investors of the income generated by an investment fund.

DIVIDEND

A distribution to shareholders of a portion of a limited company’s profits. The amount of a dividend per share is decided by the company’s board of directors and distributed in proportion to the number of shares held by each shareholder.

DECREASING TERM ASSURANCE

Decreasing term mortgage life insurance. Decreasing term cover is a form of policy where the sum assured reduces in line with your mortgage debt. So, as you pay off what you owe, the amount which the insurer would pay out if you die also decreases.

DEPOSIT ACCOUNTS

A bank account that pays interest and is usually not able to be drawn on without giving a set amount of notice or loss of interest.

DEFERRING YOUR PENSION

Putting off taking your pension.

DEFINED BENEFIT PENSION SCHEME

Also known as a final salary scheme, this is a plan where your pension is guaranteed to be a set proportion of your pre-retirement earnings.

DEFINED CONTRIBUTION SCHEME

Also known as a money purchase scheme, this is a pension plan run by an employer or a private provider such as an insurer whereby your savings are invested and you decide how to use the money on retirement.

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