Definitions that will help you in your path to financial freedom

This page has definitions of the most used terms on the website.

NB it is still under construction hence the small amount of content.

Defined benefit pension

A defined benefit (DB) pension scheme is one where the amount you’re paid on retirement is based on how many years you’ve worked for your employer and your salary. In the private sector these have become very rare now due to the risks to the employer, but if you work in the UK government, universities or schools, you are likely to hold one. Nowadays most schemes are based on you average earnings, but some may still have a final salary scheme.

The great benefit of DB schemes is that you have certainty on how much you will earn in retirement, and normally this will rise with inflation.

The Money Advice Service has further useful information.

Articles on defined benefit pension schemes.

ETF (exchange traded fund)

An ETF (exchange-traded fund), is a security that tracks an index, commodity, bonds, or a basket of assets like an index fund. Fees are low for ETFs as they are trying to track the market rather than beat it.

ISA (Individual Savings Account)

An ISA (Individual Savings Account) is a tax-free way to save or invest. If you’re starting to think about saving or investing, ISAs could be a good place to begin. information on ISAs
Articles on ISAs


Any information provided is not personal advice. You are responsible for your investment decisions and all tools provided are for illustrative purposes only. If you’re not sure whether an investment is right for you, contact a financial adviser. All investments can fall as well as rise in value, so you could get back less than you put in. Please remember, past performance is not a guide to future returns and that income is variable, not guaranteed.

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