Terminology and jargon can make things a lot more confusing than they need to be. Here are some helpful explanations:

Additional Voluntary Contributions (AVCs)

AVCs are extra contributions you make in addition to the regular pension contributions made by you and/or your employer. Tax relief is also applicable at your highest rate of income tax - whether that's 20% or 40%.

Annuity

An annuity is a contract with a life assurance company that will pay you a guaranteed regular pension income for the rest of your life. Its amount depends on the amount paid in on retirement, annuity rates, age, gender and state of health.

Defined Benefit (DB) scheme

This is a type of pension plan that pays pension income based on your final salary and number of years of service with your employer.

Defined Contribution (DC) scheme

This is a type of pension plan that builds up a pot to pay you pension income based on contributions by you and/or your employer and investment returns.

Occupational pension scheme

A pension scheme set up by an employer to provide retirement benefits for employees. These are often referred to as employer/workplace/company pension schemes. Read more details about pension plan comparisons here.

Personal Retirement Savings Account (PRSA)

A PRSA is a type of personal pension policy available from banks, life assurance companies, and brokers. See more about what a PRSA is here.

Retirement Annuity Contract (RAC)

Traditional vehicle for pension funding by self-employed or employees who are not members of an occupational pension, and with non-pensionable income.