Royal London has announced that over two million customers will share a £181 million ProfitShare payout.
The pension company explained that 2.3 million customers in total will benefit as part of its results announcement this week.
Barry O’Dwyer, Group Chief Executive Officer, commented: “Royal London is customer-owned and is run for the benefit of customers, not shareholders.
"We share our profits with eligible customers and our ProfitShare scheme will distribute £181m to 2.3 million customers in April. This was underpinned by the business delivering an 11% increase in operating profit to £277m in 2024.
“Our customer focus means we continually enhance our offerings and digital services to help customers build their financial resilience, often partnering with independent financial advisers.
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"We have recently launched an innovative new online application process for individual pensions business, making it substantially easier for advisers to work with us.
"Our customer-first approach also appeals to employers wanting to pick the best possible offering and, in 2024, nearly 1,000 employers chose to establish a Royal London Workplace Pension scheme, very often moving from a shareholder-owned competitor.
“2024 also saw Royal London enter the bulk purchase annuity market, giving trustees the option of choosing the only customer-owned provider in this market.”
People risk depleting their pension savings a decade early
New research has revealed that many people risk depleting their pension savings nearly a decade before the end of their retirement, as some take large cash lump sums from their pensions in their 50s and withdraw too much in monthly income too early.
One in seven (15%) retirees viewed their pension lump sum as a financial bonus, while one in ten (10%) treated it like a payday and spent freely, according to new figures from Legal and General.
This could be as a result of ‘The Lottery Effect’ – overnight access to large sums of money can trigger a psychological rush which can spark impulsive or unsustainable spending – similar to winning the lottery.
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