Royal London is the UK’s largest mutual life, pensions, and investment company. Because they are a mutual, they have no shareholders to pay; instead, they are owned by their members. This unique structure often leads to a more customer-centric approach and features you won't find with standard PLC providers like Aviva or Legal & General.
If you have a Royal London pension - perhaps via a current employer or a legacy policy from the Co-operative Insurance Society (CIS) - understanding how to optimise it is key to a secure retirement.
You can speak to one of our pensions experts for impartial advice about whether Royal London are the right provider for you below:
Get 100% independent pensions advice today
Our independent financial advisers have a deep working relationship with pension providers across the UK, including Royal London.
Whether you want to transfer your pension to Royal London or have an existing pension with then that you want to get the most out of, we can help.
The IFA's we work with can provide independent advice about pension transfers, reviews, drawdown, annuities and much more. Book your free initial consultation with them below:
The Royal London Difference: ProfitShare
One of the standout features of Royal London is ProfitShare. When the company performs well, they may share a portion of their profits with eligible customers by adding it directly to their pension pots.
Insight: While ProfitShare is never guaranteed, it can act as a "boost" to your savings over the long term, effectively offsetting some of the annual management charges.
Core Pension Products
Royal London's product range includes the following types of pension:
1. Workplace Pensions
Royal London is a top-tier provider for auto-enrolment schemes. Their workplace pensions are highly regarded for their "Governed Range" of funds, which are actively managed to ensure they stay within specific risk parameters.
2. Personal Pension (Pension Portfolio)
Designed for individuals, the Pension Portfolio offers a wide range of investment choices, including access to external fund managers. It is a flexible personal pension for the self-employed or those wanting to make significant ad-hoc contributions.
3. Income Release (Drawdown)
For those at the point of retirement, Royal London provides a sophisticated drawdown facility. This allows you to take an income while keeping the remainder of your pot invested, with the flexibility to change your withdrawal amounts as your needs evolve.
Fees and Charges: The Tiered Model
Royal London generally uses a "Basic Charge" of 1.00%, but very few people actually pay this full amount. They apply Management Charge Discounts based on the size of your pot:
|
Pension Value |
Typical Annual Management Charge (AMC) |
|
£0 – £46,600 |
~0.75% |
|
£46,600 – £93,200 |
~0.50% |
|
£93,200 – £279,000 |
~0.45% |
|
£279,000+ |
~0.35% - 0.40% |
Note: Individual workplace schemes may have even lower negotiated rates. It is always worth checking your specific policy document.
Reviewing Your Royal London Pension
Many people hold "legacy" Royal London policies, particularly those that were originally with CIS (Co-op) or United Friendly. A professional review is vital for these older plans because:
-
Outdated Charges: Older policies often have higher fixed fees or less transparent charging structures than modern ones.
-
Fund Performance: You may be invested in older "With-Profits" funds. While these offer some smoothed returns, they can sometimes lack the growth potential of modern diversified portfolios.
-
Risk Alignment: As you age, your tolerance for market volatility changes. A review ensures your money is in the right "Governed Fund" (rated 1–9) for your current life stage.
Transferring To and From Royal London
Transferring In (Consolidation)
Royal London makes it easy to bring multiple old pots into one place. They do not charge a fee for transfers in, and doing so can often move you into a higher "discount tier," reducing the overall percentage you pay in fees.
Transferring Out
If you decide to move your money to a SIPP (Self-Invested Personal Pension) or another provider, Royal London typically supports electronic transfers through the Origo system.
-
Caution: Before transferring out, you must check for Guaranteed Annuity Rates (GARs) or loyalty bonuses, which are common in older Royal London/CIS policies and could be lost if you move the funds.
How Our IFA Service Can Help
Navigating the nuances of a mutual provider versus a standard insurance company requires expert insight. At Money Helpdesk, we provide access to Independent Financial Advisers (IFAs) who specialize in Royal London products.
What we do for you:
-
Legacy Policy Analysis: We track down old Co-op or Royal London policies and determine their current value and benefit structure.
-
ProfitShare Optimisation: We explain how your investment choices might affect your eligibility for profit sharing.
-
Benefit Safeguarding: Our IFAs perform "due diligence" to ensure you don't accidentally forfeit valuable guarantees by moving your pension.
-
Whole-of-Market Comparison: We provide an unbiased comparison to see if a modern SIPP or a different provider (like Aviva or AJ Bell) would offer better value for your specific retirement goals.
Get started here to book a free, no-obligation chat with an independent financial adviser who specialises in Royal London’s product range and can offer imperial advice about whether they’re the right pension provider for you.