Your finances

Common terms and what they mean

Money and finance have a language of their own. It will be easier to find your way around if you know the terms.

Terms you might hear

Financial terms can be confusing for all of us. To try and make money matters less confusing, we've put money jargon into plain English, so we all know what it means. Select from our A-Z to find the term you're looking for.

A

Actuarial reduction

Acute condition

Adjustable income

Annuity

Attorney

Auto-enrolment

B

Basic State Pension

Beneficiaries

Benefit statement

C

Capital gains tax

Child Trust Fund

Chronic condition

Confirmation

Continuing power of attorney

Contributory benefit

Credit reference agency

Credit score

Creditor

D

Death in service

Debt

Debtor

Defined benefit scheme

Defined contribution scheme

Disposable income

E

Employment and Support Allowance

Enduring power of attorney

Enhanced annuity

Estate

Excess

Exclusion

Executor

F

Final salary schemes

Financial adviser

Financial Conduct Authority (FCA)

Flexi-access drawdown

G

Generic (general) advice

Gross pay

H

Holding letter

I

Ill-health early retirement

Impaired-life annuity

Incapacity Benefit

Income

Income tax

Independent financial adviser (IFA)

Individual savings account (ISA)

Inheritance tax

Instant access account

Investment-type life insurance

J

Junior ISA

L

Life insurance

Lifetime annuity

Lump sum

M

Macmillan financial guide

Means-tested benefit

Mental capacity

Money purchase annual allowance (MPAA)

N

National insurance

Net pay

Non-urgent debt

O

Occupational (company) pension

Open market option

Ordinary power of attorney

P

PAYE

Payment protection insurance

Pension consolidation

Pension Credit

Pension Wise

Pension-contribution protection benefit

Personal Independence Payment

Personal pensions

Power of attorney

Pre-existing medical condition

Premium

Priority debt

Pro rata payment

Probate

Property and affairs lasting power of attorney

S

Secured loan

Self-assessment

Serious ill-health retirement

Share-based investment

Shortfall

State Pension

State Pension age

Statutory Sick Pay (SSP)

Surrender charge

T

Tax rebate

Tax relief

Tax return

Tax year

Trust

U

Universal credit

Unsecured loans

W

Waiting period

Waiver of contribution benefit

Waiver of premium benefit

Will

Workplace pension