Financial Glossary
Key terms explained in plain English, no jargon, no complexity. We appreciate our industry uses a lot of financial ‘jargon’, which can make it difficult to decipher information and correspondence. In order to try to assist with this, we have created a glossary of many of the terms you may come across. If you would like further clarification on any of the definitions, or cannot find a particular term, we would be happy to assist further.
Emergency Fund
Cash set aside in a dedicated interest account to cover unanticipated financial emergencies such as property repairs, medical expenses and car repairs.
Estate
Assets owned by an individual at death.
Executor(s)
Individual(s) who are appointed in a will to deal with the wishes of the deceased, in administering their estate.
Equities
Ownership in a company, typically through shares. Equities offer the potential for capital growth and dividend income, but carry a higher level of risk than bonds or cash as returns are not guaranteed.
Ethical Funds
These aim to make socially responsible investments (they do not invest in companies that have interests in socially unacceptable markets or produce harmful products or by-products, such as high levels of environmental pollution).
Expression of Wishes
A non-binding letter to your pension provider indicating who you would like to receive your pension fund on death. Pension funds typically fall outside your estate for Inheritance Tax purposes, and trustees use the expression of wishes to guide their discretion.
Escalation
When an annuity payment is automatically increased at regular intervals by a fixed percentage rate.
European Central Bank (ECB)
The central bank of the member countries of the Eurozone. It sets interest rates throughout the Eurozone.