Article date: 28 January 2008
- Income drawdown, comprehensive fund choice and on-line capability added to range
Norwich Union, the UK's largest insurer, is enhancing its Retirement Solutions range of pre and post retirement products for new and existing customers1.
The new Norwich Union Income Drawdown2 plan provides an income drawdown option for customers where the sophistication of a full SIPP is not needed. Online account management3 and access to a comprehensive investment fund choice, including 73 additional funds, is also added to the Norwich Union Personal Pension range.
Norwich Union's Retirement Solutions range offers the flexibility to move client funds between Personal Pension plans, Income Drawdown, SIPP and WRAP as customers' needs change, while maintaining any A-day tax free cash protection.
Iain Oliver, head of pensions at Norwich Union, said: "SIPPs are a niche pension product designed primarily for sophisticated, high net worth customers. In essence we are providing a wider range of pension customers with a lot of the control, flexibility and fund choice they are looking for with a SIPP, at a more competitive cost.
"From extensive research we identified that the majority of customers and advisers want access to a high quality and diverse investment range, the flexibility to take income as and when they need it, and the convenience of seeing the value of their customer's investments and money in the plan online. With these enhancements to our personal pension range we are doing just that.
"Customers and advisers will have access to the features they actually want from Norwich Union Personal Pensions, without having to pay for additional functionality they are unlikely to use.
"The 199 funds available through the Retirement Solutions range have been chosen using a thorough vetting and selection process taking account of the needs of customers and advisers. This is another example of how we are stripping away unnecessary complication to make life easier for customers who are saving or preparing for retirement."
Quotes will be available for Norwich Union Income Drawdown from 31 January and the enhanced features will be available from April 2008.
Press office contacts:
Robert Pell 01904 452659 Out of hours 07800 666563
Louise Soulsby 01904 452617 Out of hours 07800 699526
Notes to editors:
1 Additional fund range and online account management will only be available on the Norwich Union Individual Your Pension Select, Designer GPP and Income Drawdown plans initially.
2 Norwich Union Income Drawdown:
- Available to both new and existing Norwich Union pension policyholders.
- Income withdrawals can be taken monthly, quarterly, half-yearly, and yearly
- Fund specific withdrawals will be available from April
- Accepts Non-Protected Rights, Protected Rights and Safeguarded Rights
- Minimum internal transfer(s) amount for set-up of Norwich Union Income Drawdown is £15,000 (after payment of any tax-free cash and Lifetime Allowance charges), but income withdrawals will not be possible until the total pension fund holding (crystallised and uncrystallised funds) with Norwich Union reaches £50,000 (ie only a tax-free cash lump sum will be available)
- Minimum external transfer(s) amount for set-up of Norwich Union Income Drawdown is £50,000 (after payment of any tax-free cash and Lifetime Allowance charges)
- Currently available for customers under age 73 as an Unsecured Pension Fund.
- Taking withdrawals may erode the capital value of the fund, especially if investment returns are poor and a high level of income is being taken. This could result in a lower income when the annuity is eventually purchased.
- The value of an investment can go down as well as up and is not guaranteed.
- Annuity rates may be at a worse level when annuity purchase takes place.
3 Online account management will be available to advisers through the adviser sales centre.
4 Norwich Union offers 199 vetted and selected investment funds through its Personal Pension products. This includes the 73 funds below, added 28 Jan 2008:
NU Absolute Tactical Asset Allocation
NU JPM Global ex-UK Bond
NU Artemis Strategic Bond
NU JPM Global High Yield Bond
NU Artemis UK Growth
NU JPM Natural Resources
NU Artemis UK Smaller Companies
NU JPM New Europe
NU Artemis UK Special Situations
NU Jupiter Ecology
NU AXA Framlington American Growth
NU Jupiter Japan Income
NU AXA Framlington Biotech
NU Jupiter Merlin Balanced Portfolio
NU AXA Framlington Emerging Markets
NU Jupiter Merlin Growth Portfolio
NU AXA Framlington Equity Income
NU Jupiter Merlin Income Portfolio
NU AXA Framlington Health
NU Jupiter Merlin Worldwide Portfolio
NU AXA Framlington Managed Balanced
NU Jupiter UK Growth
NU AXA Framlington Monthly Income
NU M&G Corporate Bond
NU AXA Framlington Pan European Bond
NU M&G Managed Growth
NU AXA Framlington UK Select Opportunities
NU M&G Optimal Income
NU AXA Framlington UK Smaller Companies
NU M&G UK Growth
NU Barclays Adventurous Growth Portfolio
NU M&G UK Select
NU Barclays Balanced Portfolio
NU New Star Active Portfolio
NU Barclays Catious Portfolio
NU New Star Balanced Portfolio
NU Barclays Growth Portfolio
NU New Star Cautious Portfolio
NU Barclays Income Portfolio
NU New Star Extra High Yield Bond
NU BGI Consensus
NU New Star Global Financials
NU Blackrock Gold & General
NU New Star Managed Portfolio
NU Blackrock UK Absolute Alpha
NU New Star Tactical Portfolio
NU Blackrock UK Special Situations
NU Old Mutual Asian Select
NU Cazenove European
NU Old Mutual Corporate Bond
NU Cazenove Multi-Manager Diversity
NU Old Mutual UK Select Mid Cap
NU Cazenove UK Growth & Income
NU Rathbone Global Opportunities
NU Diversified Strategy
NU Rathbone Income
NU First State Asia Pacific Leaders
NU Schroder European Alpha Plus
NU First State Global Emerging Market Leaders
NU Schroder Global Emerging Markets
NU First State Global Listed Infrastructure
NU Schroder Global Equity Income
NU First State Global Resources
NU Schroder Global Property Securities
NU First State Greater China Growth
NU Schroder Income Maximiser
NU Invesco Perpetual UK Equity Pension
NU Schroder Japan Alpha Plus
NU JPM Balanced Total Return
NU Schroder Managed Balanced
NU JPM Cautious Total Return
NU Schroder Medical Discovery
NU JPM Global Equity Income
About Norwich Union
Norwich Union is the UK's largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.