A MAJOR pension firm has revealed it will give millions of customers free cash in the coming days.
Royal London said it plans to share £199million of its profits with 2.4million customers.
The payments will be made on April 1, meaning they’ll land in customer accounts next week.
The amount each person will get is based on the value of the pension savings they have invested with the company.
But if the £199million pot were to be shared equally, each person would get roughly £80.
You’ll likely receive the payment if your pension plan with Royal London was taken out after July 1, 2001 and was still in place at the end of last year.
Make sure to keep your account open until April 1 as this is when the bonus will be given out.
Just be aware, the free money will be going into your pension pot rather than being handed out as a cash reward.
It should be automatically added to a separate ProfitShare account within your plan so you won’t need to do anything.
You’ll be able to take out the value of your ProfitShare account with the rest of your pension savings any time after the age of 55.
Royal London is customer-owned, which means some of its profits go to customers rather than to shareholders.
The payments are being made as part of the company’s ProfitShare scheme.
Barry O’Dwyer, group chief executive officer, said: “We recorded another strong performance in 2025 with operating profit up 18%, reflecting the positive momentum across our business…
“We’re owned by our customers and, when we do well, they share in our success.”
Royal London has handed out a total of £2billion to customers since its ProfitShare scheme started in 2007.
How do I consolidate my pension?
IF you have several workplace pensions that you’re no longer paying into, you might be better off consolidating them into a single pot.
There are several advantages to this.
The first is that by having your savings all in one place, you’ll only pay one set of fees.
You can also choose which pension provider you want to transfer the different savings to, so you can pick the best one for you.
It also makes it easier to keep track of your money.
You might want to move all your money to whichever of your existing pots has the best fees, or you could move it all to your current employer pension (if you have one).
Alternatively, you may wish to move money to a private pension or use a consolidator service, such as Pension Bee, Aviva, or Wealthify.
Make sure you compare and contrast your options carefully so that you’re picking the best home for your savings.
You’ll need to look at fees but also might want to consider the investment options available.
If any of your pots are over £30,000 you’ll need to get independent financial advice, but even if you have lots of smaller pots you should consider speaking to an independent financial advisor (IFA).
You can use Unbiased or VouchedFor to find a recommended advisor near you.
Also ask whether you’ll be charged a fee to exit your existing provider and to join your new provider, plus whether the age at which you can access your pension is different – for most people this is currently 55, but is set to rise to 57.
You also need to ensure the pension you’re leaving doesn’t come with valuable added perks, or you could lose out.
Stay alert for pension transfer scams as fraudsters often target people transferring their pension with promises of investments that are too good to be true.
