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Royal London announces with profits bonus rates Print E-mail

TEP - 31 August 2012

Royal London, the UK’s largest mutual life and pensions company, has announced bonuses for 2011 for with profits policies in the Royal London Long Term Fund and in the closed Scottish Life Fund1.

With effect from 1 January 2012:
• Regular bonus rates are maintained for Royal London policies
• Regular bonus rates are maintained or increased for Scottish Life policies
• Most final bonus rates have been increased for both Royal London and Scottish Life compared with January 2011
• The benchmark 25-year payout on a Royal London £50 per month 25-year with profits endowment maturing on 1 January 2012 is £33,7082 , representing an annualised return of 5.9% and a real3 return of 2.8% p.a.
• The payout on maturity of a Scottish Life1 £50 per month 25-year with profits endowment is £30,8312 , representing an annualised return of 5.3%, and a real3 return of 2.1% p.a.
• The payout on vesting of a Royal London 20-year £200 per month with profits personal
pension is £89,3734, representing an annualised return of 5.8%.
• The payout on vesting of a Scottish Life1 20-year £200 per month with profits personal
pension is £79,5404, representing an annualised return of 4.8%.

Commenting on the announcement, Royal London Group Finance Director Stephen
Shone said:

“Our policyholders have once again enjoyed good returns from their with profits policies over the medium to long term.

“We believe that for such investors the fundamental argument for investing in real assets remains strong. Over the longer term, real assets - such as equities and commercial property - have delivered above inflation returns for investors. Today’s announcement shows that the annualised return on a Royal London 25-year with profits endowment is 5.9%. This represents an annualised real rate of return (over and above inflation) of 2.8%. And for a similar Scottish Life policy the annualised return was 5.3%, with a real rate of return of 2.1%.

“In the Royal London Long Term Fund, the asset shares for relevant policyholders will be enhanced as a result of a mutual dividend being allocated for 2011.

“In the Scottish Life Fund, we have enhanced asset shares by 6% this year as part of our
program to distribute the Estate. Payouts for maturing policies are also being targeted at
more than these enhanced asset shares.”

-End-

 
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