Norwich Union closes pension provision

Wednesday 10th January 2007, 12:00AM GMT.

THE Island’s only personal pension and annuity provider, Norwich Union, has announced that it will be closed to new customers in Jersey, Guernsey and the Isle of Man from 1 February.

In a letter to Economic Development Minister Philip Ozouf, the company says that the decision has been taken in the wake of new regulation and a drive to improve operational performance and efficiency in a competitive market. The move follows the similar exit last year of financial services firm Zurich, and although it will come as little surprise to those in the pensions industry, the timing is somewhat unexpected. The immediate consequence is that residents have very little time left to sign up to a personal pension or annuity before all possibilities are extinguished, apart from SIPPS (Self-Invested Pension Plans), which are relatively expensive to set up and viable only for the wealthier resident.

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