New style pensions are now available to everyone

Article date: 11 April 2001

The newly launched Government stakeholder pensionmeans that for the first time people who don't work can now havetheir own pension to save for their retirement, and there's no agelimit. Launched on 6 April, stakeholder pensions are now availableto the self-employed, the unemployed, children and non-workers.

For the first time ever employers with more than five staff nowhave to ensure their staff have access to a pension scheme and theymust make sure that the scheme will be available by 8 October thisyear.

The new pensions offer great simplicity and can be started withas little as £20 a month with charges limited to a maximum of 1%per annum. To ensure flexibility payments can be stopped andstarted at any time without incurring any costs.

To guide listeners through pensions, Jerry Barnfield, directorof pension development at Norwich Union, answers some of the mostcommonly asked questions from customers about pensions on theenclosed CD:

Track 1:
What exactly is a stakeholder pension ?
Track 2:
 Who should take out one of these pensions ?
Track 3:
 Why is it important that people do something about theirpension?
Track 4:
 Where can people get help with their pension ?
Track 5:
 Do employers have to take action for their employees?
Track 6:
 What if people do nothing ?
Track 7:
 Any other important points people should consider?
Track 8:
 Do you have a simple message for people about theirpensions ?


Notes to editors

  1. A stakeholder pension is a new type of private pensionavailable from 6th April 2001 and meets new regulations set downby the Government.
  2. The information contained is based on Norwich Union'sunderstanding of current Government legislation that may alter inthe future.
  3. The value of investments can go down as well as up and is notguaranteed. Full written details are available on request.
  • CGU plc and Norwich Union plc merged on 30 May 2000 to createCGNU plc, the UK's largest insurance group and one of the top-fiveinsurers in Europe with substantial positions in other marketsaround the world, making it the world's sixth largest insurerbased on gross worldwide premiums.
  • CGNU's principal business activities are long-term savings,fund management and general insurance, with worldwide premiumincome and retail investment sales from ongoing business of over£27 billion and assets under management of more than £210billion.
  • From October 2000, the combined life and pensions, generalinsurance and retail fund management businesses in the UK operateunder the Norwich Union brand, while the institutional investmentbusiness operates under the Morley Fund Management brand.
  • Norwich Union's news releases are available on the internet

For further information, please call the Norwich Union PressOffice:

James Evans08703 66 68 78
Louise Steel08703 66 68 71
Or Financial Dynamics 
Helen Murray-Wells020 7269 7237

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