Helping you understand the new retirement options

April 2015 flexibility - how our pension products will change

Retirement options

As you know, the Government has introduced new flexibility around the options that people will have when they come to retire. These options became available from April 2015 to people aged 55 and over.

Your pension scheme members can access this flexibility with Royal London.

Existing customers will normally be able to take all or part of their pension as a lump sum from their current plan. Some customers who want to take part of their pension as a lump sum may have to transfer to a new plan to allow them to do this.

Customer mailing

At the end of July 2015, we’re mailing you with details of the letters we’re sending to pension scheme members aged 54 or over.

This mailing is to make you aware of the changes we’re making to members’ pension plans, to cater for the Government’s new flexible retirement options.  

Each customer letter will include a notice of the changes we’re making to the terms and conditions of their plan.

Copies of the letters and notice

This notice sets out additional retirement options (All & Partial UFPLS) and changes to the rules for death benefits.

Clients may be able to:

  • take as much of their plan as a lump sum as they want (subject to the minimum values set). A quarter of the funds that they take would be paid tax-free and the remaining amount would be taxed as income at the appropriate rate.
  • have benefits paid to a beneficiary after their death rather than it being restricted to being paid only to a dependant.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London EC3V 0RL.