MONEY: PENSIONS JARGON BUSTERS
Sunday 14 March 1999
Allocation rate: the percentage of your contribution that actually goes into your pension fund. It can be misleading. For example, pension companies sometimes claim an allocation rate of 102 per cent, which looks attractive until you realised the allocation is applied after the bid/offer spread. This means you invest pounds 100, lose 5 per cent through the bid/offer spread and only then gain 2 per cent through the allocation.
Policy/plan/initial fee: charged on every contribution you make. A pounds 2 monthly charge may seem little but if you are paying pounds 50 it adds up to 4 per cent.
Annual fund management charge: can be a further 1 or 1.5 per cent of your fund value.
Front-end loading: where the initial commission for setting up your pension is paid to an IFA upfront. This can eat up to 85 per cent of your first two years' contributions.
Level-loading: the IFA's commission is paid over the full course of the pension.
Carrying back: this allows you to make a contribution in one tax year but have it treated as if it had been paid the previous year to exploit any unused tax relief
Carrying forward: if you have unused tax-relief on personal pension contributions from the last six years, you can claim this relief on extra pension payments.
elephant appealPrince William signs up for our charity appeal
elephant appealSo says man jailed for cutting off dead elephant's tusks
booksWe examine the best titles for teens
scienceResearchers teach border collie to understand sentences using more than 1,000 words
booksA Christmas story in six parts
travelWill high-value tourism help the workshops of this Renaissance city?
Geoffrey Macnab does not like the comedian's big screen debut
Top PR exec Justine Sacco under fire for sending racist tweet before flying to Africa
French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
Ten best places to live in the UK: Hart in Hampshire takes top spot
'Untrue statements' anger over work to make H5N1 bird-flu virus MORE dangerous to humans
Paul Walker's daughter Meadow attends Justin Bieber Believe premiere
- 1 Top PR exec Justine Sacco under fire for sending racist tweet before flying to Africa
- 2 French pub fined €9,000 after customers returned empties to bar - because it's 'undeclared labour'
- 3 Sun will 'flip upside down' within weeks, says Nasa
- 4 The publisher who played with fire: the battle for control of Larsson's £30m legacy
- 5 Police seize possessions of rough sleepers in crackdown on homelessness
- < Previous
- Next >
iJobs Money & Business
£59999 - £80001 per annum + Benefits: Pro-Recruitment Group: A Top 10 firm in ...
£50000 - £75000 per annum + benefits + bonus: Harrington Starr: Project Manage...
£60000 - £90000 per annum + benefits + bonus: Harrington Starr: Business Analy...
£Negotiable: Citifocus: High calibre individual with institutional client serv...