Norwich Union personal pension, any good?

tomS_4

I'm looking to set up a personal pension as i'll be working abroad for a year or two and so not getting a pension here.

I've looked over the MSE article on picking a stakeholder pension, via someone like cavendish online. I looked at a few they offered and to be honest couldn't tell much difference between them.

the norwich union one looked ok.. with them being a big, well known company.. with a lot of options and with the seeming sensible policy of making the investments gradually more safe as you get closer to retirement.

Does this seem a reasonable idea.. or are there any others that people think are clear improvements?

(30, 5 year final salary pension with old job, don't want anythign that needs too much management or hassle as i'll be abroad. Probably investing 100 to 200 a month. )

[edit] reading around it looks like specific recommendations might be out. But any thoughts or warnings would be appreciated.

I've never got a personal pension before.. how does the fund choice work once I apply? How easy is it to change them? DOes norwich union have a good range? Anyone used them?

dunstonh

Can you clarify if you are looking at personal pensions or stakeholder pensions?

In the case of NU, the personal pension (at time of posting, as a revised version is on the cards apparantly) is better than the stakeholder pension. It can actually have lower charges than the stakeholder and offers a better fund range.

How are you investing the money? After this is an investment and that is top priority. Once you know the sectors and funds you want to invest in, its then a case of researching the providers to see if they offer the funds you want and what charges their are.

how does the fund choice work once I apply?

You state the funds you want on the application. Some providers restrict the quantity you can have.

How easy is it to change them?

Depends on the provider. Some have restrictions, others do not.

DOes norwich union have a good range?

On the stakeholder, its decent enough as stakeholders go but insufficient for anyone who is looking for a proper investment. The PPP is better with the fund range.

Anyone used them?

Yes. Although they are not usually my first choice (or second, or third).

EdInvestor

There is absolutely no point whatsoever in putting money in a pension if you are abroad, because you won't get any tax relief.

Instead you should invest directly into shares or unit trusts via a discount broker that will take expats who have onshore bank accounts such as https://www.selftrade.co.uk

When you return and start a new job you can then shift the money into a pension wrapper if you want to as a lump sum, and it will get tax relief. But not now.

tomS_4

I was told that it was a good way to get tax relief while abroad, is that not true?

I'm leaving at the end of October on a one year contract (though I may stay longer if i like it) and so I gather i'll be liable for UK tax until at least April 2007.. and the time after that unless I leave after April 2008 (one complete tax year).

Income tax in the UK is higher than Japan, so I'd have to pay the difference on return. I was advised that if i paid into a personal pension in the UK i'd get tax relief on that money.

I'm looking on it more as saving than a high gain investment, but it seemed prudent to be putting something away for my old age while abroad, rather than having a gap in my pension payments. As I don't know how long i'm staying I thought i'd start by setting up a personal pension, then re-evaluate things if it looks like i'll be away for more than a full tax year.

If i've been missinformed than please let me know!

Thanks, Tom

EdInvestor

http://www.hmrc.gov.uk/pdfs/ir20.htm