Glossary of terms

Married or in a committed relationship.

Fund managers that don't move the money they manage between different assets a lot as much as active fund managers . A passive fund manager usually buys a range of assets to spread the risk, then holds the same assets for a long time. Passive fund managers generally rely on the market to dictate the performance of their fund. A passive fund is likely to be a lower risk investment than an active fund, but also has less potential for higher returns.

The situation in New Zealand where taxes paid by today's taxpayers are used to pay New Zealand Superannuation to today's retired people. An alternative system would establish a dedicated fund into which each generation of taxpayers puts aside funds which finance their own retirement income.

An income paid at regular intervals to a retired person, by a government or through an employer superannuation scheme.

Yearly. Often shortened to "p.a."

Assets that have a physical presence, such as real estate or jewellery, as opposed to financial assets, such as shares or government bonds.

The saving that people undertake to fund their own retirement income.

A company such as a bank, finance or insurance company that creates and provides insurance, mortgage, banking, savings or investment products.

Retirement income provided on a pay-as-you-go basis from general tax revenues. New Zealand's public provision is New Zealand Superannuation (NZS). Other taxpayer-funded assistance is available to elderly people.