Leading pension provider, Norwich Union is to offer special terms on its pre-stakeholder product, Your Pension @ Norwich Union, rewarding customers with reduced charges and a further reduction in charges after 5 years. The offer applies to new business written from 1st March on Your Pension and Your Pension Select @ Norwich Union and will continue to apply to both products when Your Pension is relaunched as a full stakeholder product on 6th April. The offer is based on reduced charges according to the size of the fund and rewards those customers who keep their pension running for 5 years or longer and whose funds build up to a certain size.
Leading pension provider, Norwich Union is to offer special terms on its pre-stakeholder product, Your Pension @ Norwich Union, rewarding customers with reduced charges and a further reduction in charges after 5 years. The offer applies to new business written from 1st March on Your Pension and Your Pension Select @ Norwich Union and will continue to apply to both products when Your Pension is relaunched as a full stakeholder product on 6th April. The offer is based on reduced charges according to the size of the fund and rewards those customers who keep their pension running for 5 years or longer and whose funds build up to a certain size.
Jerry Barnfield, Director of Pension Development commented: "We were the first pension provider to offer tiered charging on our individual and group pre-stakeholder product. Now we want to continue to enhance our position in the pre-stakeholder market and take advantage of the run up to the end of the tax year and the current activity in the transfer market. Our offer takes the form of a large fund rebate that will reward customers with a further reduction in fund charges after 5 years. Funds in excess of Ł100,000 will receive the highest level of rebate with an annual fund based charge of only 0.25% *."
IFAs will be able to offer customers a competitive and attractive product that provides a reducing scale of charges according to the size of the fund.
Norwich Union will be making a further announcement of its Stakeholder pension and personal pension propositions from 6th April.
* Based on Your Pension @ Norwich Union through a fee-based adviser.
Notes to editors:
- The offer applies to the contract in its entirety, not only contributions made during the duration of the offer period, ie. all contributions made during life of the policy will benefit from the additional large fund rebate, provided the fund is large enough.
- Under the current special offer, Your Pension and Your Pension Select have no annual Fund Charges until the monthly anniversary following April 2001.
- The offer applies to new policies with a commencement date of 1st March but does not apply to increments or switches from an existing Norwich Union pension plan
- Norwich Union is the UK life and general insurance trading brand of holding company, CGNU plc, which was created from the merger between CGU and Norwich Union on 30 May 2000.
- Norwich Union is the UK's largest life and pension company (based on 2000 new premium income) and is the No 1 IFA office.
- Your Pension @ Norwich Union is offered by Norwich Union Life.
- Full written details of Your Pension and Your Pension Select are available on request.
- The table below shows the reduction in charges based on the fund value after 5 years:
| Reduction in charges | ||
| Fund values | First 5 years - large fund rebate | After 5 years with special offer |
| Up to Ł10,000 | 0% | 0% |
| Ł10,001 up to Ł19,999 | 0.05% | 0.1% |
| Ł20,000 up to Ł49,999 | 0.1% | 0.15% |
| Ł50,000 up to Ł99,999 | 0.2% | 0.3% |
| Ł100,000 or more | 0.2% | 0.35% |
Press office contacts:
James Evans
08703 66 68 78
Louisa Steel
08703 66 68 71