ABI - Association of British Insurers, trade body through which insurance companies can air views on matters of common concern.

Accrual Rate- The rate at which your pension benefits build up as pensionable service is completed in a Final Salary Scheme.

Actuary - Someone qualified to consider financial issues, particularly ones involving probabilities such as life expectancy.

AER - Annual Equivalent Rate - The interest paid from current, deposit or savings accounts.

AIFA - Association of Independent Financial Advisers, industry trade body for financial advisers who are not tied agents.

AITC - Association of Investment Trust Companies, the industry trade body of investment trust companies.

Analyst - Person who studies a particular market or industry sector and makes recommendations to investors about investing in companies' shares.

Annual volatility - A measure used to assess the risk of a portfolio.

Annuity - This is the contract you purchase from an insurance company using a lump sum of money (e.g. the proceeds of your pension fund) to guarantee you an annual income for a period of time (e.g. for ten years).

APR - Annual Percentage Rate - The percentage you are charged over a year on the outstanding balance when you borrow money or make a purchase on credit.

Assets - Anything of value can be referred to as an asset, such as your home, jewellery or antiques. Within investments, assets are another word for investments in a unit trust portfolio.

AUTIF - The Association of Unit Trusts and Investment Funds, the industry trade body of unit trust and investment trust management companies.

AVCs - Annual Voluntary Contributions - Extra payments you can make in addition to your main occupational pension scheme contributions to boost your retirement benefits. AVCs can be paid either to your employer's scheme or to a separate arrangement. See also FSAVCs

Base rate - The interest set by the Bank of England on which other banks base their rates.

Basic Rate Tax - The income tax paid on taxable income above a certain figure, currently 22%.

Basic State Pension - The single person's flat rate State pension paid when you reach state pension age (60 for women, 65 for men, although set to increase to 65 for women by 2020) if you have paid sufficient National Insurance contributions during your working life.

Bid-offer spread - The difference between the prices at which you buy units and sell them back.

Bid price - The price at which you sell units in a unit trust back to the investment manager.

Bond - A form of investment offered by an institution such as a building society, insurance/investment company or the government with the purpose of raising capital, in which the lump sum is repaid with interest at maturity. Bonds can be bought and sold on the stock market.

Bonus - An extra payment that with-profits policyholders may have added to their contract depending on the profits the company makes in any one year, or over a period of years.