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Glossary

• Last Updated: 05 Aug 2025
• Fact Checked
Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

Writer

Katherine Read

Katherine Read

Financial Writer

Katherine Read Is a Financial Writer Known for Her Work on Financial Planning and Retirement Finance, Covering Equity Release, Lifetime Mortgages, Home Reversion, Retirement Planning, SIPPs, Pension Drawdown, and Interest-Only Mortgages.

Editor

Bert Hofhuis

Bert Hofhuis

Entrepreneur & Founder

Bert Hofhuis Is a Founder & Entrepreneur Simplifying the Complexities of Later Life Planning. He Navigates the Intricacies of Equity Release, Lifetime Mortgages, Reverse Mortgages, and Wealth Management With Clarity and Expertise.

Reviewer

Paul Derek Sawyer

Reviewed By: Paul Derek Sawyer

Paul Derek Sawyer

External Compliance Officer

Paul Is an External Compliance Expert and Director of Alpha Capital Compliance Limited, Known for Its Direct Approach to Financial Compliance.

Contributors:

Key Takeaways

• EveryInvestor provides robust resources to help UK retirees and pre-retirees navigate the intricacies of equity release, SIPPs, and related retirement finance.
• Understanding key terms is critical for making informed, secure financial decisions as you approach or enjoy retirement.
• Articles are available for each concept, guiding you through eligibility, risks, rewards, and professional support.

Gain clarity and confidence for your financial decisions with this authoritative glossary—covering every relevant term, product, and concept featured on EveryInvestor.

Introduction

Planning your retirement requires navigating a complex landscape of products, jargon, and regulations.

This glossary provides easy-to-understand definitions for every key concept, tool, and process on the EveryInvestor website—from equity release and mortgages to SIPPs, calculators, and more.

Comprehensive Glossary of Terms

A

• Adviser/Broker
  • Definition: FCA-regulated financial professional providing tailored guidance on equity release, retirement mortgages, pensions, or investments in the UK.
  • Synonyms: Financial adviser, IFA, broker
  • Related Terms: Provider, Regulation
• Amortisation
  • Definition: Gradual repayment of debt (principal and interest) over a set period, common in mortgages.
  • Synonyms: Repayment schedule
  • Related Terms: Capital Repayment, Mortgage
• Annual Allowance
  • Definition: Maximum yearly amount you may pay into your UK pension(s) before tax penalties apply.
  • Synonyms: Pension cap
  • Related Terms: SIPP, Tax Relief
• Application Process
  • Definition: Steps required to secure a retirement finance product, from advice and valuation to offer, legals and completion.
  • Synonyms: Application, process
  • Related Terms: Eligibility, Valuation
• Asset Allocation
  • Definition: Dividing investments among various asset classes to manage risk and reward in a pension or SIPP.
  • Synonyms: Portfolio mix
  • Related Terms: Diversification, Investment Options

B–C

• Beneficiary
  • Definition: Person(s) who will inherit your pension, equity release proceeds, or estate upon your death.
  • Synonyms: Heir, nominee
  • Related Terms: Inheritance, Estate Planning
• Budget
  • Definition: Financial plan for allocating income and managing expenses, essential for retirement planning.
  • Synonyms: Spending plan
  • Related Terms: Planning, Cashflow
• Calculator
  • Definition: Online tool estimating your equity release amount, pension growth, or retirement income required.
  • Synonyms: Retirement calculator
  • Related Terms: Planning, Assessment
• Capital Repayment
  • Definition: Repaying the original amount borrowed (principal), not just interest, as part of a mortgage or equity release loan.
  • Synonyms: Principal repayment
  • Related Terms: Amortisation, Interest-only
• Compound Interest
  • Definition: Interest calculated on both the initial loan/investment and the accumulated interest, especially significant in lifetime mortgages.
  • Synonyms: Interest on interest
  • Related Terms: Roll-up Interest, Lifetime Mortgage
• Consolidation of Pensions
  • Definition: Combining multiple pension pots into one SIPP for easier management.
  • Synonyms: Pension transfer, pot merge
  • Related Terms: SIPP, Transfer Value
• Consumer Protection
  • Definition: Regulatory measures to safeguard your rights when using retirement, mortgage, or investment products.
  • Synonyms: Safeguards
  • Related Terms: Regulated Product, FCA, Equity Release Council
• Council Tax Reduction / Pension Credit
  • Definition: Means-tested government benefits that could be affected by taking pension withdrawals or releasing equity.
  • Synonyms: State support, benefits
  • Related Terms: Means-Tested Benefits
• Credit Check
  • Definition: Financial background review conducted by lenders when you apply for a mortgage or similar product.
  • Synonyms: Credit search
  • Related Terms: Application, Valuation

D–F

• Defined Contribution Pension
  • Definition: Pension where your contributions are invested and the outcome depends on investment performance (e.g., SIPP).
  • Synonyms: Money purchase scheme
  • Related Terms: SIPP, Personal Pension
• Diversification
  • Definition: Spreading investments across different asset classes to reduce risk.
  • Synonyms: Spreading risk
  • Related Terms: Asset Allocation, Portfolio
• Drawdown
  • Definition: Withdraw funds gradually (as needed) from your pension or equity release plan rather than as a lump sum.
  • Synonyms: Flexible withdrawal, retirement drawdown
  • Related Terms: Lump Sum, Income Drawdown
• Early Repayment Charge
  • Definition: Fee for repaying a mortgage or equity release loan ahead of the agreed term.
  • Synonyms: ERC, exit penalty
  • Related Terms: Repayment, Lifetime Mortgage
• Eligibility Criteria
  • Definition: Product requirements (e.g., age, property value, residency) for each retirement solution.
  • Synonyms: Qualifying criteria
  • Related Terms: Application, Valuation
• Equity Release
  • Definition: Accessing cash from your property’s value, usually via a lifetime mortgage or home reversion plan.
  • Synonyms: Home equity release
  • Related Terms: Lifetime Mortgage, Home Reversion
• Equity Release Council (ERC)
  • Definition: UK industry body setting standards for consumer protection in equity release.
  • Synonyms: ERC
  • Related Terms: Regulation, Adviser
• ESG (Environmental, Social, Governance) Investments
  • Definition: Investments meeting environmental, social, and governance criteria; available in many pensions and SIPPs.
  • Synonyms: Sustainable investment, green funds
  • Related Terms: SIPP Investment, Portfolio

F–I

• FCA (Financial Conduct Authority)
  • Definition: UK regulator for pensions, investments, equity release, and mortgage products.
  • Synonyms: Regulator, financial authority
  • Related Terms: Consumer Protection, Adviser
• Fee Structure
  • Definition: The costs charged by a provider for setting up, managing, or exiting a financial product.
  • Synonyms: Charges, costs
  • Related Terms: Early Repayment Charge, Arrangement Fee
• Fintech
  • Definition: Financial services integrating advanced technology—e.g., online pension dashboards, robo-advice, digital mortgages.
  • Synonyms: Digital finance, financial technology
  • Related Terms: Calculator, Adviser
• Fixed Income
  • Definition: Investments (e.g., bonds or annuities) delivering predictable income streams, often held in retirement portfolios.
  • Synonyms: Income securities
  • Related Terms: SIPP Investments, Annuity
• Full SIPP
  • Definition: A SIPP with the widest investment options, including commercial property, private equity, and a vast range of securities.
  • Synonyms: Comprehensive SIPP
  • Related Terms: Standard SIPP, SIPP Investment
• Fund Accessibility
  • Definition: The ease with which you can access or move your invested money.
  • Synonyms: Liquidity
  • Related Terms: Drawdown, Transfer Value

H–L

• Home Reversion Plan
  • Definition: Selling a share of your property to a provider for a lump sum or regular payment, while retaining the right to live in the property.
  • Synonyms: Home reversion scheme
  • Related Terms: Equity Release
• Income Drawdown
  • Definition: Taking retirement income flexibly from your pension/SIPP as needed while funds remain invested.
  • Synonyms: Pension drawdown, flexible income
  • Related Terms: Drawdown, Lump Sum
• Inflation Protection
  • Definition: Features to maintain your retirement income’s value as cost of living rises (often in annuities or index-linked pensions).
  • Related Terms: Fixed Income, Annuity
• Inheritance Protection
  • Definition: Options within equity release or pensions to guarantee a minimum inheritance for your heirs.
  • Synonyms: Protected equity, inheritance safeguard
  • Related Terms: Estate Planning, Beneficiary
• Interest-Only Mortgage
  • Definition: A mortgage where only interest is paid monthly, with principal repaid at term-end or sale.
  • Synonyms: IO mortgage
  • Related Terms: Retirement interest-only (RIO), Capital Repayment
• Investment Trusts
  • Definition: Publicly listed vehicles investing in diversified assets—common SIPP holdings.
  • Synonyms: Closed-ended fund
  • Related Terms: SIPP Investment

L–M

• Lifetime Mortgage
  • Definition: The main form of equity release, where a loan secured on your home accrues compound interest, repaid on sale/move to care.
  • Synonyms: Roll-up mortgage, equity release mortgage
  • Related Terms: Equity Release, Compound Interest
• Liquidity
  • Definition: How quickly and easily an asset can be converted to cash. Important for pension withdrawals and SIPP investments.
  • Synonyms: Fund accessibility
  • Related Terms: Drawdown, SIPP
• Lump Sum
  • Definition: A single, significant payment withdrawn at once from a pension or equity release plan; for pensions, often tax-free up to 25%.
  • Synonyms: One-off payment
  • Related Terms: Drawdown, Tax-Free Lump Sum
• Managed SIPP Portfolio
  • Definition: A professionally managed collection of SIPP investments tailored for your strategy/risk profile.
  • Synonyms: Discretionary SIPP
  • Related Terms: SIPP, Asset Allocation
• Means-Tested Benefits
  • Definition: UK state benefits dependent on overall financial resources; large withdrawals can affect eligibility.
  • Synonyms: Income-tested benefits
  • Related Terms: Pension Credit, Council Tax Reduction
• Minimum Age for SIPP
  • Definition: Age at which you can open (18) and access (currently 55, rising to 57) a SIPP.
  • Related Terms: SIPP, Drawdown
• Mortgage Valuation
  • Definition: Assessment of a property’s value for lending purposes.
  • Synonyms: Property valuation, survey
  • Related Terms: Eligibility, Application

P–R

• Pension Credit
  • Definition: A means-tested benefit for UK retirees to supplement retirement income.
  • Related Terms: Means-Tested Benefits
• Personal Pension
  • Definition: A defined contribution plan with restricted investment range, usually managed by the provider, as opposed to a SIPP.
  • Related Terms: SIPP, Pension
• Planning
  • Definition: Steps to assess, structure, and monitor your retirement finance strategy or pension arrangements.
  • Related Terms: Budget, Calculator
• Portfolio
  • Definition: Collection of investments (shares, bonds, funds, property) held in a SIPP or pension.
  • Related Terms: Asset Allocation, Diversification
• Property Investment (Within SIPP/Equity Release)
  • Definition: Using a SIPP to hold commercial property, or leveraging your home as security for equity release.
  • Related Terms: SIPP, Lifetime Mortgage
• Property Valuation
  • Definition: Market estimate of your home’s worth—key to calculating how much equity you can release or borrow.
  • Synonyms: Home valuation, survey
  • Related Terms: Eligibility, Calculator
• Provider
  • Definition: The bank/institution offering you a mortgage, SIPP, or equity release product.
  • Synonyms: Lender
  • Related Terms: Adviser, Regulated Product

Q–S

• Quick Calculator
  • Definition: An online estimator of pension pot, equity release amount, or projected retirement income.
  • Synonyms: Retirement calculator
  • Related Terms: Calculator, Planning
• Regulated Product
  • Definition: A product governed by UK law and FCA standards for consumer protection.
  • Synonyms: Authorised product
  • Related Terms: FCA, Equity Release Council
• Retirement Interest-Only (RIO) Mortgage
  • Definition: Later-life mortgage requiring only interest payments; the principal is repaid when you move out/sell/die.
  • Synonyms: RIO mortgage, later-life IO
  • Related Terms: Interest-Only Mortgage, Retirement Mortgage
• Retirement Mortgage
  • Definition: Mortgage specifically designed for borrowers in or near retirement, with flexible payment plans.
  • Related Terms: RIO, Lifetime Mortgage
• Roll-Up Interest
  • Definition: Interest added to your loan balance over time (not paid monthly), common in lifetime mortgages/equity release.
  • Related Terms: Compound Interest, Lifetime Mortgage

S–T

• SIPP (Self-Invested Personal Pension)
  • Definition: Highly flexible UK pension giving control over asset selection, contributions, and withdrawals.
  • Related Terms: Full SIPP, Personal Pension
• SIPP Investment Options
  • Definition: The array of assets (shares, trusts, property, etc.) available to hold within a SIPP.
  • Related Terms: Asset Allocation, Portfolio
• Structured Product
  • Definition: Investments structured to pay returns based on performance of specific indices or assets, with pre-set risks/rewards; sometimes used in SIPPs.
  • Related Terms: SIPP Investment
• Standard SIPP
  • Definition: SIPP with a narrower investment range and generally lower fees than a full SIPP.
  • Related Terms: SIPP, Full SIPP
• Sustainability
  • Definition: Focus on investing for positive environmental and social outcomes, sometimes through ESG or green products.
  • Related Terms: ESG, SIPP Investment
• Synonyms
  • Definition: Alternative names or abbreviations for commonly searched terms/plans, to improve glossary searchability and user understanding.
  • Related Terms: Aliases, Related Terms

T–Z

• Tax-Free Lump Sum
  • Definition: Up to 25% of your pension/SIPP can be withdrawn tax-free after age 55+ (increasing to 57).
  • Synonyms: Pension commencement lump sum
  • Related Terms: Lump Sum, Drawdown
• Top-Up (Tax Relief)
  • Definition: Additional funds added by the government to your pension contributions, offering tax relief.
  • Synonyms: Contribution relief
  • Related Terms: SIPP, Annual Allowance
• Transfer Value
  • Definition: Cash value of your pension when moving it between schemes (CETV).
  • Related Terms: SIPP, Consolidation
• Trending Term
  • Definition: Recently relevant or fast-growing financial concepts for retirees and investors (e.g., ESG, fintech, inflation protection).
  • Related Terms: ESG, Fintech, Inflation Protection
• Valuation (Property)
  • Definition: Estimate of a property's current market value—vital for mortgages, equity release, and later-life lending.
  • Synonyms: Property valuation, home survey
  • Related Terms: Eligibility, Application
• Voluntary Repayments
  • Definition: Optional, early repayments towards an equity release or lifetime mortgage to control loan growth.
  • Related Terms: Early Repayment, Lifetime Mortgage
• Withdrawal Rules
  • Definition: Regulations guiding when and how you can take money from your pension, SIPP, or equity release product.
  • Synonyms: Pension access
  • Related Terms: Drawdown, Lump Sum

Common Questions

Conclusion

Mastering the language of retirement finance is an essential step toward securing your future.

The EveryInvestor Glossary covers every key term and concept from across the site, breaking down complex jargon and processes into plain English.

Whether you’re just starting to consider your options or making critical decisions about your pension, equity release, or mortgage, this glossary will ensure you’re empowered with the knowledge you need to make well-informed, safe, and confident choices about your financial future.