With effect from 1 August 2002, Norwich Union have changed their With Profits Life and Pension Bonus Rates, in light of continuing falls in the worldwide stock markets. The details below list the (current rates) in brackets and the new rates wef 01/08/02.
Life Unitised (4.25%) 3.75%. Life Income fund - Portfolio Bond (5.00%) 4.50% made up of (3.75%) 3.25% regular bonus plus (1.25%) 1.25% additional bonus. Life Income fund - Bond 2000 (4.50%) 4.00% made up of (3.25%) 3.25% regular bonus plus (1.25%) 0.75% additional bonus.
Stakeholder Pensions (4.75%) 4.25%. Other Pensions (5.25%) 4.75%.
With Profits Annuity - Unchanged 5.0% of the basic income including previous regular bonus where applicable. Based on the Norwich Union Life and Pensions With Profits Fund. This applies to annuity payments on or after the next plan anniversary.
ISAs (5.25%) 4.75% (based on the Norwich Union Life & Pensions With-Profits fund).
Norwich Union have confirmed that they believe with-profits investments continue to be valued by customers and play an appropriate part in a well balanced investment portfolio. "In making these changes we have taken great care to ensure that our bonus rates are equitable to both new and existing customers. This is in line with our bonus policy and is consistent with the view from John Tiner of the FSA who stated the "companies should set bonus rates that are in line with their ongoing financial soundness and that are a fair reflection of their ability to pay".
If you require further details or wish to discuss matters regarding these types of investment, please contact us.