Annuity: Insurance policy bought with lump sum. Pays annuitant annual income for life.

Defined benefit: Occupational scheme. Links pension value to salary.

Defined contribution: Occupational/personal scheme. Contributions build up a fund which is used at retirement to buy an annuity.

Dependency ratio: Ratio of those aged 65 and over to those of working age.

Unfunded/book reserve scheme: Has no separate fund earmarked to pay benefits. May be met out of book reserves in company's accounts.

Pay-as-you-go: Relies on social security or private contributions of working population to pay pensions of retired.

Portability: Degree to which pension rights can be transferred from one company/country to another during working life time.

Prudent man principle: General guideline saying fiduciaries should only invest in a manner they believe suitable for their own money.

Three-tier system: Three pillars or tiers of pensions provision are state, occupational and personal schemes.

Vesting period: Contribution period prior to pension rights eligibility.