Royal London Launches Annuity Bureau
Wednesday 13 August 2014
Royal London - the UK’s largest mutual life and pensions company - has launched a new service to help customers who wish to buy a guaranteed income for life find the best rate for their individual circumstances.
The service will be available to Royal London’s four million direct customers who do not have a financial adviser as they approach retirement. The bureau significantly expands the mutual’s current service which is provided by Prudential. Customers can now compare both standard and enhanced annuities from 10 leading annuity providers, including Prudential. The firms represented on the bureau provide 99% of the annuities bought in the open market.
Royal London is the first of the UK’s major pension providers to offer this direct service to its customers. Despite the changes to pensions introduced in the recent budget Royal London firmly believes that, for many people, annuities are a good option.
Commenting on the launch of the new service, Phil Loney, CEO of Royal London Group, said:
“Every year thousands of our policy holders reach retirement age. Recently the number of people taking cash has doubled, and we anticipate this trend to continue. Many people are likely to take the cash element whilst keeping the rest of their pot invested, and consider taking an annuity later in life.”
“It’s vital people make the right decision when purchasing an annuity – it is a crucial, irreversible decision which affects their income for the rest of their lives. I urge all our direct, non-adviser customers who are approaching retirement to make time to use our new service so they get the right type of annuity, with the highest income available to them.”
About the Bureau
The bureau, developed in partnership with Just Retirement Solutions, is designed to help customers shop around and find the most competitive annuity rates as they approach retirement. It helps them do three essential things: compare annuities from 10 providers; understand their retirement options (types of annuity); and see how their choices could affect their retirement income.
It doesn’t offer customers regulated retirement advice but helps them navigate their annuity options and see how these choices affect their retirement income. Over the next few months the bureau will be rolled out to Royal London’s direct customers - people without access to a regulated financial adviser.
It also provides customers with tools and guidance to help them make informed choices; describes all types of annuities in simple terms; offers in-depth information about the benefits of shopping around before purchasing. There is also a comprehensive jargon-buster to help customers better understand of the terminology, plus an FAQ to answer queries customers may have about their options.
NOTES TO EDITORS
- Royal London’s Annuity Bureau is online at http://retirement.royallondon.com or on 0345 605 0310 (Mon-Fri 9am-8pm).
- The service offers access to the following 10 annuity providers: Aviva, Canada Life, Hodge Lifetime, Just Retirement, Legal & General, LV=, MGM Advantage, Partnership, Prudential, Scottish Widows.
- Commission rates will be clearly disclosed and the maximum commission that Royal London will earn is 1.8% on Standard Annuities and 2.5% on Enhanced Annuities. Anything over this is rebated back to the customer.
- More information about the pension changes announced by the government in March 2014: www.gov.uk/government/news/pension-reforms-eight-things-you-should-know
For further information please contact:
- Gareth Evans, Head of Corporate Affairs: 020 7 506 6715/07919 170069 firstname.lastname@example.org or
- Nancy Baynes, PR Manager: 020 7 506 6585/07919 170524 or email@example.com
About Royal London:
Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £76.2 billion. Group businesses serve around 5.3 million customers and employ 2,900 people. (Figures quoted are as at 31 March 2014). Over the next two years the Group is moving to operate all of its UK life, pension and investment business under a new version of the Royal London brand. Royal London Asset Management is now under the new master-brand and the Scottish Life, Scottish Provident and Bright Grey brands will migrate over the next 18 months.