Personal pension schemes

Schemes provided by 9 pension givers / pension providers such as insurance companies and banks. The premiums are invested in a 10 pension treasure / pension fund, and on retirement the pensioner receives a 11 lump sum / chunk sum to invest in an annuity (see below). Personal pension schemes are also known as 12 " private pensions " / " alternative pensions ".

Salaries and wages are often paid after deductions-such as social security charges and pension contributions.

Amounts of money that people have to spend regularly are outgoings. These often include:

§ living expenses: money spent on everyday needs such as food, clothes and public transport

§ bills: requests for the payment of money owed for services such as electricity, gas and telephone connections

§ rent: the money paid for the use of a house'or flat

§ a mortgage: repayments of money borrowed to buy a house or flat

§ health insurance: financial protection against medical expenses for sickness or accidental injuries

§ tax: money paid to finance government spending.

A financial plan, showing how much money a person or organization expects to earn and spend is called a budget.