P
PAYE - Pay As You Earn - Where income tax
and National Insurance contributions are collected from your
salary, before it is paid to you, by your employer and passed
to the Inland Revenue.
Pension Forecast - A service provided by
the Department of Social Security which tells you what your
pension is worth.
Pensions Ombudsman - An independent arbitrator
for pension disputes with statutory power to enforce his or
her decisions.
PEP - Personal Equity Plan - Tax-efficient
savings plans replaced by ISAs in 1999. You can no longer invest
in a new PEP but you can still transfer your existing PEP into
an ISA.
Personal Pension Scheme - A pension scheme
for those who are self-employed, or, if employed, are not members
of an occupational scheme and so make their own pension provision.
Phased Retirement - The facility to use small
segments of your pension to buy annuities as and when you need
more income rather than buying one annuity annually with your
whole fund.
PHI - Permanent Health Insurance - Insurance
that pays a level of income in the event of long term sickness
or disability
PLC - Public Limited Company - Any company
with a share capital of at least a fixed amount.
PMI - Private Medical Insurance - Insurance
which will pay for the cost of medical treatment in accordance
with the policy cover.
Portfolio - A collection of shares owned
by an investor.
Price/Earnings Ratio - Calculated by dividing
the market price of a company's ordinary shares by its earning-per-share
figure as an indicator of the company's performance potential.
Q
Qualifying (life policy) - a type of insurance
policy that can have tax benefits.
Quartile - Most UK funds are grouped into
sectors and each sector is divided into four quartiles with
the best performing funds being in the top quartile.
R
Return - The amount by which the value of
your investment increases.
Rights Issue - New shares sold by a company
to raise capital.
Risk - Refers to the fact that the value
of your savings and investments can fall as well as rise.
RPI - Retail Price Index - The official measure
of inflation calculated by weighting the costs of goods and
services to approximate a typical family spending pattern. |
