Lifestyling - Norwich Union

Mike_S_8

Does anyone have any experience, advice, tips, etc. about the NU pension "Lifestyling" option where investments are moved to less risky funds - but with likely lower returns - as retirement age approaches? Is it a good bet - or not? Any and all comments will be appreciated.

dunstonh

If you are a lazy investor, then its a good option. Experienced investors and/or hands on investors wouldnt use it. Then again, experienced investors wouldnt use NU for pensions.

Mike_S_8

dunstonh wrote: »

... experienced investors wouldnt use NU for pensions.

I know what you mean - but it was set up by my company - to escape from Equitable - and on the advice of an IFA who turned out not to be up to scratch either!

Thanks for your input.

EdInvestor

If you are planning to buy an annuity at retirement it may make sense as it stops you from being hit by a stockmarket downturn at the last minute.But of course it also prevents you from benefitting from a last minute market boom.

If you are planning to use income drawdown rather than an annuity, there is no point in lifestyling at all, as the idea is to remain invested.

dunstonh

Company arrangements to be lower quality in fund choice than individual schemes. Usually at the request of the employer. NU is a good choice for a company arrangement.

Mike_S_8

Thanks gentlemen. I don't know if it makes any difference but the "investment" was originally set up as group personal scheme (Stakeholder - "Your Pension @ Norwich Union") but the company went bust; we all lost our jobs, and are each now individually responsible for our own respective plans.

Does this additional bit of info. affect any of the comments you have made re. this Lifestying business? I guess not but ...

Thanks for taking the time to respond.