The final part of our pensions jargon buster covers letters R-Z. If you have missed the first two parts, you can find them here:

Pensions glossary & jargon buster – part one

Pensions glossary & jargon buster – part two

Let’s get started with the third installment of this series of pensions articles.


If you request to leave your employer’s workplace pension, you could be automatically re-enrolled at a later date. This is called opting out and re-enrolment.

Relief at source

Relief at source is one of the two ways you can get tax relief on the money you put into your pension pot.

Relief at source means your contributions are:

  • Taken from your pay after your wages are taxed
  • Tax relief is then claimed for you

Find out more: Tax Relief


Everyone has a different attitude to risk. Some are risk-averse, and some not.

By working with a good financial adviser, they are duty bound to work with you to understand your attitude to risk, and how best to best your money.


Another expression for pension scheme.

Scheme rules

The legal documents by which a pension scheme is governed.

Selected retirement age

This is the age you choose to retire.

It doesn’t necessarily relate to when you can actually start drawing down funds from your pensions.

Planning for retirement?

Want to access your pension savings before you retire?

Do you have enough saved for your ideal retirement?

If these are questions you are asking yourselves, here are some links to relevant services Sterling and Law – Hampshire offer:

Retirement Planning Specialists

Pensions Advice

Shares, stocks and equities

These are three expressions covering the investments people make directly into companies listed on the stock exchange.

A share, stock or equity is a portion of a company you can invest in.

Small pot pension lump sum

If the value of your pension pot is equal to or less than £10,000, you may be able to cash in the entire figure at age 55 (or age 57 from 2028).

Stakeholder pension

One of the different types of pension.

A  stakeholder pension is flexible personal pension scheme.

State Pension

If you pay National Insurance (NI) contributions over the years, you’ll receive a state pension.

The state pension is paid by the government.

The state pension is £9,339 a year.

Find out more about the State Pension


Another name for shares or equities.


The percentage of your earnings you receive paid to the government is income tax.

Tax paid on the growth of assets is called Capital Gains Tax.

The tax your pay on your estate is Inheritance Tax (IHT).

Do you foresee a large IHT being levied against your estate?

Find out more: Estate Planning & Inheritance Tax Advice

Tax-efficient investments

Pensions are a tax-efficient investment.

The government contributes a percentage towards your pension, which has an impact on your capital growth.

If your pension contributions are coming out of your salary before tax, they won’t be counted as part of your taxable salary so you won’t pay any tax on them.

The Pensions Ombudsman (TPO)

Need to raise a complaint about your pension provider?

Speak to the Pensions Ombudsman.

Find out more: The Pensions Ombudsman

The Pensions Regulator (TPR)

TPR is the UK regulator of work-based pension schemes.

The Teachers’ Pension Scheme (TPS)

A specific pension scheme for teachers and those working in education.

Are you a teacher or someone working in education?

Sterling & Law – Hampshire has devised a bespoke presentation to help Teacher’s understand the TPS.

Find out more: Teachers’ Pension Scheme Seminar.


If you have multiple pensions, you can transfer them into one place.

This could make it easier to track your pension performance and plan for your retirement.

Uncrystallised funds pension lump sums (UFPLS)

Some people in the pensions industry call uncrystallised funds pension lump sums ‘flumps’

Uncrystallised funds pension lump sums is a very technical term HMRC use.


Volatility refers to how stable the price of a share or value of an investment is.

If the price of a stock moves up and down regularly, it would be considered to have a high degree of volatility.

Winding-up lump sum

This refers to the financial figure you would receive if employer ever decides to close (wind up) their workplace pension scheme.

Workplace pension

For most people this is basically a pot of money your employer helps you fill up. You pay in a small percentage of your wages and they add some more. You get tax relief on the money you save into your pension pot too – so you end up with quite a bit more than you pay in.

About Sterling & Law – Hampshire

Sterling & Law Hampshire, part of the Sterling and Law Group, has one clear goal; to help you plan for and realise the financial future you desire.

When working alongside our clients, we enter a process where we take the time to fully understand your life, career, business, family and financial goals.

This allows us to create and deliver a financial, wealth and retirement plan aligned to your own unique objectives.

Sterling & Law Hampshire specialises in providing expert financial planning & wealth management services to a range of people across Hampshire. With offices in Fareham & Lee-on-the-Solent, we are well placed to cover Southampton, , Portsmouth, Gosport, Chichester and The Meon Valley.

Related pensions articles

Enjoyed this article?

Keen to learn more about the world of pensions and investments?

Here are a few recent articles we have published on the topic of pensions and retirement:

Retirement planning tips

Pensions: What is the lifetime allowance and how can I plan for it?

Pensions advice: Are you at risk by not understanding your pension?