Actively managed funds aim to achieve returns in excess of a specified benchmark index/outperform a benchmark index.
Some employers require employees to become members and contribute to their company pension plan. If a member tops up those contributions in order to increase their pension benefits, those contributions are called AVCs. The pension fund that AVCs build up have more options available at retirement (e.g. investing in an Approved Retirement Fund, taking a taxable lump sum). All member contributions to the Standard Life Executive Pension are treated as AVCs.
At retirement, in return for a lump sum from your pension fund, you are given a guaranteed income for life. The amount of income depends on when you buy the annuity, interest rates at the time you buy, your age, what rate your provider is offering and what options you choose (e.g. if you want an income paid to your spouse after your death). All Standard Life pension policies have the option of buying an annuity at retirement.
At retirement, you may be able to choose to invest a lump sum in a personal retirement fund, from which you can take an income or leave your money invested for a rainy day. When you die, your fund becomes part of your estate and has certain tax advantages, depending on who you leave it to.
Similar investment to an ARF, but has a restriction that only the growth in your investment can be withdrawn before age 75. It is a safety net required by the Government if you don’t have sufficient ‘guaranteed for life’ income at retirement.
A lump sum investment policy, where the lump sum is your pension fund from a company pension plan. Sometimes called a ‘Personal Retirement Bond’.
When you invest in a policy, you will be told that you have 30 days during which you have the option to change your mind and cancel the policy and get a refund.
A company pension plan where your pension benefits are based on the contributions made by you and your employer, charges and investment performance. Sometimes called ‘Money Purchase’ pension schemes.
A company pension plan where your pension benefits are based on your salary and pensionable service. Sometimes called ‘Final Salary’ pension schemes.
Deposit Interest Retention Tax. The tax you pay on interest earned on money you have in a deposit account. It is automatically deducted from your account.
Funds which are managed by leading international investment companies which are available on Standard Life policies. We will regularly add funds to ensure that there is a diverse and comprehensive selection to choose from.
These are funds which aim to track the relevant stock exchange index by investing in the stocks and shares that make up that index.
Someone who is authorised by the Financial Regulator to give advice to consumers. Financial Advisers can be ‘tied’ – where they are only able to give advice on the products of one provider (e.g. their employer), or ‘independent’ – where they are able to give advice on a range of products and providers. Standard Life strongly recommends that you always consult an independent financial adviser.
The charge on your fund to cover the day-to-day costs of managing the fund you have invested in. It is included in the calculation of the daily fund prices.
These are funds that give access to many specialist fund managers within one fund. The investment strategy aims for increased diversification and consistent out performance.
The amount of self-employed or non-pensionable earnings that can be taken into account in determining what your tax relief limit is on your personal pension contributions. It is your gross earnings less allowable deductions (e.g. capital allowances).
A scheme set up by an employer to provide retirement benefits for employees - a company pension plan.
An income paid to your spouse after you die for the rest of their life.
A weekly pension paid to you by the State from age 65 after you have retired. You need to make a number of contributions to the Pay Related Social Insurance (PRSI) fund in order to qualify for this pension.
A person you appoint to buy and sell stocks and shares for you through any of the world’s stock exchanges. They can manage your money invested in 3 different ways:
At retirement, you can take a lump sum from your pension fund without paying any tax on it. If you own a personal pension, you can take up to 25% of your fund as a tax-free lump sum. If you are a member of a company pension plan, you can take up to one and a half times your final salary as a tax-free lump sum, depending on how long you worked for the company.
You can apply to the Revenue to claim tax relief on the money you invest into your pension. However, there are limits on the amount you can get tax relief on.
If you change jobs, you can normally move your pension with you. The transfer value is the value of your pension fund that you can transfer to your new employer's pension scheme.
A group or company responsible for managing a pension scheme in the best interests of its members.
Wilshire Associates have being appointed by Standard Life on an exclusive basis with responsibility for the Multi-Manager fund range. Based in the US, Wilshire are one of the leading investment consultants and multi-managers in the world, advising on assets totalling more than €1.5 trillion.
...gives a brief and basic description of various words or phrases used in the financial services industry. They should not be treated as a full definition, which may depend on your particular circumstances, be set out in legislation and/or subject to Revenue interpretation and practice… sometimes there is the ‘exception to the rule’!
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