Pension Terminology

Risk Level – Each fund has a risk level attached to it which is a guide how risky the fund is. A higher number means a higher risk fund and a lower number means a lower risk fund. A higher risk fund will give you more potential for investment growth. The scale is generally 1 to 7.

Buy Out Bond – A type of retirement product also known as a Personal Retirement Bond

Contributions – These are the payments you pay into the pensions fund. In the case of a Buy out Bond, the only contribution allowed is the transfer from your previous employment. No further contributions are allowed to a Buy out Bond.

What is a Buy Out Bond?

A Buy Out Bond (BOB) which can also be known as a Personal Retirement Bond, is policy that is set up by trustees of a pension scheme to provide retirement benefits for a former member of the scheme. It basically means that if you leave a pension scheme, you can bring your pension benefits with you and take control over it by having...