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.
Permanent Health Insurance - Insurance which replaces
income lost due to long term illness or injury and pays
relative to the size of your salary.
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.
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.
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.
