Below is a list of terms that are frequently used in investment together with their significance
| Term | Description |
| Annual Management Charge | Administration charge to cover the services provided. The charge Is usually a percentage of the total fund value. |
| Annuity | An annuity uses a member’s accumulated pension fund to provide payments at regular scheduled intervals upon retirement. |
| Annual Percentage Rate | An annual percentage rate (APR) is the annual rate charged for borrowing or earning through an investment, and is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transactions but do not take compounding interest into account. |
| Best Interests | Retirement schemes and the service providers are licensed and fully regulated by the MFSA – Malta Financial Services Authority. The MFSA authorises the service providers to take investment decisions that are only in your best interest – putting you first. |
| Defined Contribution (DC) Scheme | A trust-based or contract-based pension scheme that provides pension scheme benefits based on the contributions invested, the returns received on that investment (minus any charges incurred) and the rate at which the final pension fund is annuitized or drawn down on a programmed basis. |
| Default Fund | The pre-assigned fund or funds into which a member’s contributions are invested, if the individual does not show any particular interest in a specific fund. |
| Investment Policy | This is a document provided to you by the provider of the Private Retirement Pension product, which sets out how your savings will be invested. The investment policy should disclose all the related risks |
| Lump Sum | A one-time payment with no terms and conditions linked to it. For those who opt for retirement pension plan, part of the lump sum can be withdrawn between the age of 50 and 70 years up to a maximum of 30% of pension savings plus interest at the time the lump sum is withdrawn. |
| Occupational Pension Scheme | An Occupational Retirement Scheme is a scheme or arrangement established for, or by, an employer or a number of employers or an association representing employers, jointly or separately, for the benefit of employees and under which payments are made to Members and Beneficiaries for the principal purpose of providing Retirement Benefits. |
| Prudent Manner | This means that the provider of the product needs to act with prudence, intelligence where the safeguarding of our savings comes first. |
| Rate of Return | The income earned by holding an asset or portfolio over a specified time period. |
| Survivors | In case of death, a person’s assests and incomes will be inherited by the heirs according to a will which establishes who and how inheritance shall be divided. |
| Tax Rebate | In the context of a Private Retirement Pension product the tax rebate is the incentive provided to you by the government to attract you to enrol in a pension plan. A tax rebate is deducted from your annual tax bill. |