Pensions and other financial products

9. Pensions and other financial products

A. Pensions

A pension is a sum/quantity of money paid regularly to a person who has reached a certain age or retired. It is usually paid until the receiver/recipient’s death, although in some cases a widow/wife may continue to receive payments after her husband’s death.


State pension

Pensions paid by the state. In many countries, these are contribution-based: people who have not paid sufficient/satisfactory contributions during their work lives/working lives do not receive the full amount.


Occupational pension schemes

Pension schemes for employees working in a particular industry or for a particular company. In some cases, these are administered by insurance companies who invest the payments/premiums and use the profits from this to pay out the benefits/rewards. In other cases they are self-administered: the premiums are invested by the pension fund trustees/trusteds.


Personal pension schemes

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


B. Financial products

1. Annuity           

a. If you are too till to work, you receive payments.

2. Life insurance     

b. You pay a lump sum, and receive regular payments for the rest of your life.

3. Life assurance       

c. You receive a lump sum on a certain date (or earlier if you die).

4. Endowment assurance

d. Your beneficiaries receive money if you die young.

5. Endowment mortgage 

e. You borrow money to buy a house. Many years later, you endowment repays the loan.

6. Private health insurance

f. you borrow money. When you die, your house is sold to repay the loan.

7. Sickness insurance

g. Your beneficiaries receive money when you die.

8. Equity release scheme

h. Your private hospital bills are paid.



1. A person who gives you information about financial products is a

a. financial adviser    b. financial helper       c. financial assistant

2. Some financial advisers only earn money by giving advice. Others earn from    selling financial products.

a. wages              b. payments            c. commission

3. An actuary is a person who insurance risk and calculates premiums.

a. thinks about        b. assesses             c. decides

4. when an endowment             , you receive a lump sum.

a. finishes             b. ends                 c. matures

5. Prices go up every year. This is because of

A. inflation            b. expansion            c. evolution

6. Some pension payments increase every year   inflation.

A. in time with         b. in line with           c. at the speed of

7. Pension payments which increase in line with inflation are .

A. index connected      b. index linked          c. index controlled

8. Many financial analysts predict a caused by too many pensioner and not enough workers.

A. pension crisis        b. pension disaster       c. pensions emergency

9. A small additional pension is known as a .

A. topper pension       b. topping pension       c. top-up pension

10. Banks and insurance companies are types of

A. financial institution  b. finance company       c. financier

11. Pension funds are usually administered by a  of trustees.

A. group               b. bunch                 c. board

12. Pension funds, insurance companies and other financial institutions that invest on the stock market are known as.

A. commercial investors b. institutional investors   c. company investors

13. Individual people who invest on the stock market are known as

a. private investors     b. personal investors       c. one-man investors

14. In most countries, financial products and services are by government.

a. watched            b. decided                 c. regulated

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