Royal London profit sharing reduces charges
Mutual life company Royal London is to share a portion of its profits from last year with more than a million of its customers.
They are awarding a ProfitShare of 0.18% in respect of the 2016 calendar year, so all eligible plan holders will be receiving a 0.18% award calculated as a percentage of their pension fund value as at 1st April 2017.
The company’s ProfitShare scheme will see £114m of its 2016 profits distributed among more than one million members, bringing the total amount distributed to Royal London customers since 2007 to £650m.
Increase in ProfitShare
Reflecting the positive performance of the Group in 2016, the Board has decided to increase ProfitShare (after tax) from £70m in 2015 to £114m in 2016.
Last year the company increased the group of customers who are eligible to share in its profits to include all unit-linked pension and drawdown members, meaning that anyone automatically enrolled into a Royal London workplace pension scheme or taking an income from an eligible Royal London pension will receive a share of the profits.
“Powerful Demonstration of the Extra Value”
Royal London chief executive Phil Loney called the ProfitShare programme a “powerful demonstration of the extra value” the firms provides to its customers.
For quarter of a million Royal London pension savers the allocation of ProfitShare will effectively wipe more than a third off their annual management charges. This is a helpful boost to growth for Royal London customers but it remains the case that, across the whole of the workplace pensions market, contributions to pensions are too low.
So, for more information regarding Royal London profit sharing reduces charges, pensions or retirement and to speak with one of our Independent Financial advisers please contact us at [email protected] or call 01273 208813.
This article was first published 19th April 2017.
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