In relation to a pension, the choice of how to take, or 'draw', your fund (e.g. as a lump sum and pension, or as a pension only) and from which company to buy an annuity. This can be from a different provider than the one who administered your pension fund while you were working (see Open Market Option, above). Alternatively, in relation to an investment, a contract giving the right to buy or sell commodities, currencies or shares at a fixed date in the future at a fixed price.
Your right at retirement to buy an annuity from a provider other than the one which administered your pension fund.
The term used for when cover under an insurance policy begins. This may be before you have paid a premium.
These offer a tax efficient way to save and can be used as an alternative to, or alongside, a traditional pension plan. While tax relief is not available on contributions paid in to or proceeds taken from a bond, no further penalties are applied to the amount taken from the bond.
The price at which you buy units from a unit trust investment manager.
A managed fund which holds a portfolio of investments into which you can buy in. Unlike a unit trust, OEICs are companies issuing shares instead of units and normally quote a single price for buying and selling shares.
A legal contract set up by an employer to provide pensions and/or other benefits for one or more employees on retirement, death or leaving pensionable service.