Ey up, 1st August is Yorkshire Day and it’s a time for the staff here in York to celebrate God’s own county and all things Yorkshire, from the obvious Yorkshire Pudding to the more obscure gems that we gave the world, such as the bottle bank, the cat’s eye and the world’s first football club – Sheffield FC (formed in 1857!) 

One of the perceived traits of the Yorkshire person is no nonsense, straight forward talking. We like, or at least try our best, to tell it how it is!workplace-speech

With this in mind we thought you’d be chuffed if we decipher some of the jargon the pensions industry is known for and translate so you and your employees know what it all means when you get your annual statements!

So, here we go...


Annual Management Charge, basically how much you pay to be a member of your pension scheme, as a percentage of your pension pot. Other charges may also apply. You may want to check what you’re paying as these charges vary a lot.

Lifestyle Strategy

Essentially just the reduction in investment risk as you approach retirement

Defined Contribution Pension

Builds up a pot of money to provide cash/income or both when you choose to take benefits after age 55. The amount you build up depends on how much you (and often your employer) pay in, the investment returns you receive and the charges you pay.

Defined Benefit Pension

Pays a retirement income based on your salary with the specific employer and how long you have been a member of the pension scheme. Also called Final Salary or Career Average pension scheme.

Annual Allowance

The maximum that you and an employer can pay into pensions each year (that qualifies for tax relief). Currently £40,000 but for personal contributions your total earnings if less. Some people, such as high income individuals or those who have taken benefits on a flexible basis may have a lower allowance.

Lifetime Allowanceworkplace-piggybank

The maximum value of pension savings that you can build up without paying an additional tax charge. Currently £1,055,000 for the 2019/20 tax year, so a lovely problem to have!

Nomination Form

A form to instruct your pension provider who you would like your pension pot paying to in the event of death (very important to complete this). Sometimes called ‘Expression of Wishes’ form.


It’s just a posh name for a guaranteed pension income, usually paid for life but not always!

Flexi Access Drawdown

Your pension pot is left invested, but you can take an income or cash from it (as much or as little as you like). But be careful, you might run out!

Uncrystallised Pension

A pension pot that you’ve not cashed in or taken money out of.

Money Purchase Annual Allowance (MPAA)

The reduced amount that can be paid into a pension scheme and still receive tax relief if you have started to take money out of a Defined Contribution pension pot on a flexible basis (currently £4,000 in the 19/20 tax year). One to watch out for if you want to start taking flexible benefits and keep paying into a pension.

Uncrystallised Funds Pension Lump Sum (UFPLS)

One of the worst bits of jargon! A cash sum taken from a pension pot that has not yet paid out any retirement benefits. Usually this is paid tax free but there can be a limit for those with large pension savings.

How can we help?

What with all these technical terms kicking around, employees more often than not look to their employers for help with pensions and retirement planning and we can help you to help them.

With a great range of employee communications, we can help you positively and effectively assist your employees to try and improve their retirement.

Watch the video below to see some of them in action:


Talk to the York team

Telephone 01904 236400
Email: yorkteam@psaspire.com


Posted by Leon Farrar

Topics: Retirement, dc pension schemes, York

New call-to-action

Ask The Experts

Want to get in touch?
Just fill out the form below and we will be in touch shortly.


Next Generation Savings

Changing Workplace Savings Behaviour for the Better



We provide consultancy services to employers and trustees on contract-based and trust-based schemes, including master trusts. Our proposition encompasses governance, investment, administration and communications.



Establishing and governing the ideal workplace pensions and savings for your employees can be complex and time consuming. That’s where we come in.


Engagement & Education

We use innovative communication channels and modern technologies to help educate, engage and inspire employees across a range of financial topics.


Find out more


With greater choice and freedom in how and when individuals are able to access their pension fund, there is now an even greater need for early education and advanced planning. Find out how we help.



Our investment research division analyses and rates over 18,000 DC investment funds. The insight we have enables us to support your investment objectives, making sure they're on track to deliver.


Health & Risk

Our health & risk service provides tailored combinations of cover and cost to exactly match each employer's requirements, helping you get best value for your benefits spend.