Enjoying retirement

Find expert advice on everything from making the most of your pension pot to planning action-packed adventures.

What would I tell my younger self about pensions

Hindsight's a wonderful thing. Virgin Money customers share the advice they wish they'd known earlier in life.

Jargon buster

You might have a lifetime of experience but there’s no guarantee you’ve learnt all the lingo you need to get through retirement. Below we’ve compiled all the terms you need so you can concentrate on growing old disgracefully.

An annuity allows you to turn your pension savings into a regular income at retirement. These are arranged with annuity providers (typically insurance companies).

An annuity rate is used to calculate the amount of income you will receive once you have used your pension savings to buy an annuity.

These are items you own with monetary value, including your home, savings or investments.

Drawdown is when you choose to access money in your pension as an income at retirement. Up to 25% can be taken as a tax-free lump sum, and you can keep the rest of your pension in a range of investments, drawing down further income as and when required.

Everything you own.

A financial professional who can give you advice.

This is the tax payable after you die if the value of your estate is valued at more than the limit set by the government (currently £325,000). Your loved ones will have to pay 40% tax on any amount above the threshold.

Services which help people with an illness or disability who cannot care for themselves. It can be provided by the government or funded privately.

A pension helps you save for your retirement. There are three main types of pensions: a defined contribution pension scheme (see below), a defined benefit pension scheme (likewise), and the state pension (ditto).

A company pension scheme that gives you an income for life which increases each year, based on how many years you worked for the company, how much you earn and how long you’ve been part of the scheme.

A scheme where money can be paid in by both you and your employer. Your pension savings can then be used to provide you with an income in retirement.

This is paid by the government and everyone is entitled to it once they reach state pension age – providing they’ve made National Insurance (NI) contributions.

A certificate given to an employee at the end of a period of employment, providing details of their tax, pay and benefits.

A written legal document that gives an individual the authority to act for another person.

As the name suggests, payment is made in the event that the policy holder is diagnosed with a terminal illness within the term of the insurance.

A legal document that sets out your wishes when you die, including what happens to your estate and prize possessions.

Useful links

Everyone needs help from time to time and so you may find these links handy.

Money Advice Service
Help with planning your retirement, automatic enrolment, types of pension and retirement income.

GOV.UK
Information about paying tax on your pension.

NHS
A guide to care and support services in England.


Before making financial decisions always do research, or talk to a financial adviser. Views are those of our mentors and customers and do not constitute financial advice.