London Life - Jargon Buster

Use our Jargon Buster to cut through the complicated language financial services companies sometimes use, and find out what it really means. The list is in alphabetical order so you can scroll down to look up words and their meanings:

Additional Bonus
A bonus that may be added when your product is cashed in or when it matures. Sometimes known as Final or Terminal Bonus.
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Additional Voluntary Contributions (AVC)
Extra contributions paid by a member of an occupational pension scheme to provide benefits in retirement, in addition to the main scheme benefits.
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Adviser
An adviser is someone who is authorised and regulated by the Financial Services Authority (FSA) to look at your circumstances and advise you on suitable products to meet your financial needs. An adviser can either sell products from one company, or a number of companies.
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Alternatively Secured Pension (ASP)
This is a product that enables you to draw down an income up to a set limit up to the age of 75, rather than buying an annuity while the fund is still invested.
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Annual Bonus
A sum that may be added to the value of your conventional with-profits product once a year. (Also known as reversionary bonus).
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Annuity
A product that provides a guaranteed regular income for a fixed number of years, or for the rest of your life. It is usually purchased using your pension fund.
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Annuitant
The person who receives the annuity for a specified term or for the remainder of their life.
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Annual Percentage Rate (APR)
A rate of annual interest used by lenders which takes account of the set up and continuing costs of the loan over its entire term.
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Asset Allocation
This is the proportion of a fund that is invested in each asset class.
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Asset Class
These are the different types of asset that are included in an investment fund. (E.g. Equities, Property, Gilts and Bonds, Cash).
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