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:

S2P (State Second Pension)
If you're employed, and are not contracted out of the second state pension to your employers pension scheme, some of your National Insurance contributions go towards S2P. This is an earnings related pension which is paid to you by the Government when you retire, on top of your basic state pension.
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Scheme Member
A person whose pension is part of a registered pension scheme.
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Scheme Pension
A pension paid by the pension scheme or by an insurance company selected by the scheme administrator.
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Securities & Investment Board (SIB)
An organisation which has now been replaced by the Financial Services Authority (FSA).
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Selected Benefit Date (SBD)
The date you select when pension benefits from a pension scheme are intended to come into payment.
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SERPS (State Earnings Related Pension Scheme)
The predecessor of the State Second Pension (S2P) - see "S2P".
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Shareholder
A shareholder holds one or more shares in a company and has part ownership of that company, and shares in that companies profits or losses.
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Shares
A share of the ownership of a company. This also entitles you to share in any profits of that company.
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Share Price
The cost of buying one share.
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Short Term Annuity
A pension income that is payable for a set period of time up to a maximum of 5 years.
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Spouse
The other partner to a legal marriage recognised in the UK.
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Standard Lifetime Allowance (SLA)
The overall ceiling on the amount of tax-privileged savings that any one individual can accumulate over the course of their lifetime (without taking any special factors into account that may increase or decrease the tax-privileged ceiling). The standard lifetime allowance for each tax year will be specified by the Treasury, but will never be less than the amount for the previous tax year.
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Standard Lifetime Allowance Charge
The taxes on any benefits taken that are more than the available lifetime allowance.
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Stakeholder pension
A personal pension with restricted costs introduced by the Government in April 2001.
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Stamp duty
A tax a buyer pays on the value of the property they're buying if it costs over �125,000 (2008/2009).
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State pension
This is paid to everyone. How much you will get depends on how much you have paid or have been credited in National Insurance contributions by State Pension Age.
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Sum Assured
The amount of money that a life assurance policy guarantees to pay at maturity or on death.
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Surrender
To cancel an investment or life assurance policy. There may be penalties if you cancel the policy before it matures.
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