Norwich unionwith profits pension

harkin_2

Is it worth continuing with this? Or would I be better off cashing it in & paying it into a non-with profits scheme.

dunstonh

NU are withdrawing the with profits fund from their stakeholder pension for new business. There are two versions of the NU stakeholder. The more recent one will have all poliyholders being sent a letter offering an alternative fund option (NU currently have 23 funds on their stakeholder). Non responders will go into a default option but you can choose a spread of the others. I seem to recall the older stakeholder version policyholders are not going to get a letter but can switch funds if they wish.

The current NU with profits fund is a good fund and on stakeholder/current personal pension terms can be quite beneficial. On some of their older versions, they can be less desirable but some of the older ones have quite high guaranteed annuity rates attached to them which would be lost if switched or transferred.

So, in answer to your question... maybe. Maybe not.

homersimpson_3

The current NU with profits fund is a good fund and on stakeholder/current personal pension terms can be quite beneficial.

can you please explain.

dunstonh

homersimpson wrote:

can you please explain.

There are different versions of the with profits fund. Over the years NU has inherited some from purchases and mergers. Some of them are average, some are poor, some are good. The current "CGNU unitised with profits" fund is one of the better ones. Indeed, it is very highly regarded and considering it's size, has proven to be quite dynamic for what it is.

So, you cannot say that the NU with profits fund is good or bad because it really depends on which one you are in and what guarantees may or may not apply to that particular fund or product.

EdInvestor

Members of the old General Accident and Commercial Union WP funds may be in line for a windfall in the next year or two, as the orphan assets may be distributed.So they should probably stay put.

This doesn't apply to members of the old NU fund or the currently open CGNU fund.

... some of the older ones have quite high guaranteed annuity rates attached to them which would be lost if switched or transferred.

Before moving money out of ANY old WP pension, you should check for valuable guaranteed annuity rates.