Aviva Pension Review

Overall Rating

Top-class Company. If companies like the Norwich go bust then Great Britain PLC will shut down shortly afterwards.

Like all pension providers they give a picture of false prosperity for the future. You are only going to get back WHAT YOU PUT IN.

Ok, been self employed since 1976. In 1988 took Accountant's advice (before new FSA regulations came in) to open a Private Pension. My wife did the same in the mid-90s with Scottish Amicable. Now we are just small self-employed people and between us saved a couple of hundred pounds or so a month towards retirement. In early 2003 we realised that our Pension Funds were not making anything, because of low interest rates (when I first started with the Norwich it gave an 'assumed growth' of 14% or thereabouts per annum!!). As we have both reached 50 we decided to close the plans down and take the pensions now. One thing for sure there was not going to be anything else paid in here, - it might as well go in a cash ISA or similar. We both took our tax free allowance and are now being 'drip-fed' a pathetic amount of money each month for the rest of our lives that is no use nor ornament to anyone. Now before anyone jumps in and says: "you only get back what you pay in" - yes, of course you do! But our simple advice to anyone thinking of taking out a Personal Pension Plan with just modest contributions like ourselves is, DON'T! Put it into Property (fortunately we have property investments), or a cash ISA, or Building Society etc., as there is nothing more frustrating than have XXXXX tied up in a Pension Fund that you cannot get your hands on, and are being drip-fed this pathetic amount (just enough to pay the electricity bill) each month. I do not criticise the Norwich Union here, as they are among the best providers (the ScotAm Pension was switched to Norwich), - but I criticise the system, - a system that encourages people to subscribe to pensions, that unless you are a 'top-dollar' earner and contributor are a total waste of time. I give a value for money rating of 5 on Personal Pensions in general, and have to give the Norwich a top overall rating of 10 as a Company. Chancellor Gordon Brown please read this posting and get these useless pension funds, say under £50,000, back to the policy holders so we can use the money as we wish (ok we know we will have to pay tax on refunds!)

Members' Comments onAWG's Review

• AWG on 28th Nov 2003

  Follow up from AWG. By coincidence, the day after making this review and it being approved I received a letter from: Retirement Pension Forecasting Team, The Pension Service, Whitley Road, Newcastle Upon Tyne. This obviously is an attempt by Government to get people into providing for themselves before it's too late. If I were 11 years older and entitled to State Pension I'd receive £82.23p. per week. Thanks a lot!! Also enclosed was a booklet "Pensions for the Self Employed - Your Guide". This is encouraging people to save for retirement either via a Stakeholder or Personal Pension Scheme. Well you've seen what our Personal Pension Scheme has returned - so I'll let you make up your own mind! Ok, we all need to do SOMETHING. We have invested in prime rental property which will give us a reasonable retirement pot. But isn't it about time that Great Britain FACED UP to the fact that to provide a real State Pension like many European Countries, that retired people can live on in dignity, - a proper level of taxation must be applied across the board whether the electorate likes it or not? Labour has realised we need to PAY for a proper Health Service (although where the extra revenue will go I dread to think!), - so how about also facing up to the Pensions crisis? I've said all I'm going to say now, and I welcome intelligent debate within this site.

• dareag on 3rd Feb 2004

  I agree with the review about a small contribution to a fund being useless.
  It would nice to find the best available alternative.

• AWG on 12th Nov 2004

  Well, the property investment venture worked out for us. We bought in 2000 and sold in July 2004 actually doubling our money, so I guess that made up for the disappointment of Private Pensions.
  
  It is now November 2004 and I'd advise putting large sums into Mutual Building Society time locked Bonds. Also Premium Bonds DO give a return on reasonable investments of say £8,000 or over. Otherwise go for one of these regular savings plans that pay you around 7% per annum at time of this posting. But if you are of pre-1965 vintage, unless you are loaded, beware Private Pension funds.
  
  Happy Saving!

• alanp on 18th Mar 2005

  When the company decided to open a pension scheme I was delighted. The scheme was with NU and they advised that I transfer my existing pension schemes into the NU, which I did. As a 52 year old (at that time) I also contributed vast amounts in during the first year to build up the pension fund. To my dismay the amount in the fund reduced by over 14,000 pounds in the first year (2002). NU claimed it was because I had invested in the poor performing areas of their portfolio. So I changed to a less riskier fund and reduced my investment to the same amount as my company invests (3% of salary) which is not much. In the meantime I have now invested in property and shares. The rises in property values have far outstripped any other investment. My point is how come NU allow poor performing funds to continue thus losing it's investors vast sums?. Because of the bad peformance by NU, my company is in the process of changing from NU to another pension company but lets face it, who cares - it seems to me that all pension funds are a complete waste of time and cause emense stress and hassle. I feel that there are safer ways to invest your money where one can maintain control. So when planning for a dignified retirement, research the market and above all, think of number one because none of this lot will.

• RFM on 9th May 2005

  I too have been subject to Norwich Unions bungling mis-management of funds, being led to believe in 1987 that I would be as they said in their advert "better off the Norwich Way" .. I would have been better off putting my money on a 3 legged horse, money by the way which represented 20 years of pension subscriptions, I am absolutely disgusted with the way I have been treated by this company, they don't give a toss about your hard earned money, I bet the executives are not treated in the way their customers are. As it is young people have got their heads screwed on a bit better than I had, I who can blame them for keeping clear of pension companies...my advice to anyone remotely thinking of taking out a pension with NU...is TELL THEM TO STICK THEIR PENSION PLAN.