Glossary

Annuity

A guaranteed income given by an insurance company in exchange for the value of your pension pot.

Gross income

Income before any deductions (of income tax, NICs etc.)

Income Tax

A UK tax on income from all sources (including pension income).

Inheritance Tax

A UK tax on inherited money, property and other assets.

ISAs

Individual Savings Accounts where the earnings, for example from interest, are tax-free.

Legal & General

Legal & General Group is a multinational financial services company with its headquarters in London, UK.

National Insurance Contributions (NICs)

A form of taxation of incomes payable by those aged up to the state pension age.

Pension Credit

A government benefit paid to those over state pension age and on a low income. Pension Credit brings incomes up to the minimum level set each year by the government.

Workplace pension

A pension provided by an employer to eligible employees (who are automatically enrolled in the pension scheme unless they opt out).