Supplementary materials

Pensions and other financial products

Exercise 1. Choose the correct alternative.

Pensions

A pension is a 1 sum / quantity of money paid regularly to a person who has reached a certain age or retired. It is usually paid until the 2 receiver's / recipient's death, although in some cases a 3 widow / wife may continue to receive payments after her husband's death.

State pensions

Pensions paid by the state. In many countries, these are contribution-based: people who have not paid 4 sufficient / satisfactory contributions during their 5 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 6 payments / premiums and use the profits from this to pay out the 7 benefits / rewards. In other cases they are self-administered: the premiums are invested by the pension fund 8 trustees / trusteds.

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".

Financial products

Exercise 2. Match the financial product with the benefits.

1. annuity	a. If you're too ill 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, your 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.

Exercise 3. Choose the best word to complete the sentence.

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 pensioners and not enough workers.

a. pensions crisis b. pensions 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 the government.

a. watched b. decided c. Regulated