The pension company explained that a total of 2.3 million customers will benefit as part of the results announcement this week.
Barry O'Dwyer, CEO of the group, commented:
“We share profits with qualified customers, and the Profitshare scheme will distribute between £181 million and 2.3 million customers in April, supported by an increase in operating profit of 11% to £277 million in 2024.
“Our customer focus means continually strengthening our offerings and digital services to help our customers build financial resilience and partner with often independent financial advisors.
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“We have recently launched an innovative new online application process for individual pension businesses, making it easier for our advisors to work with us.
“Our customer-first approach appeals to employers who want to choose the best possible service, and in 2024 nearly 1,000 employers chose to establish a Royal London workplace pension scheme.
“In 2024, Royal London entered the bulk purchase pension market, offering trustees the option of choosing the sole customer-owned provider in this market.”
People risk draining pension savings 10 years earlier
New research reveals that many people risk depleting their pension savings nearly a decade before retirement. This is because they get a large amount of cash payments from pensions in their 50s and withdraw too quickly if their monthly income is too early.
According to new figures from Legal and General, one in seven (15%) retirees considered their pension lump sum as a financial bonus, while one in ten treated them like payday and spent freely.
This could be the result of the “lottery effect.” Overnight access to large amounts of money can cause a psychological rush that can cause impulsive or unsustainable spending, just like winning the lottery.
