Royal London advised sales buoyed by retirement income planning

Loney-Phil-Royal London-2013

Royal London has seen a 28 per cent rise in advised new life and pensions business as retirement income strategies continue to drive sales.

The provider has reported total advised new life and business of £6.1bn for the year to 30 September, compared with £4.8bn at the same time last year.

Individual pensions and drawdown business is up by 11 per cent from £2.4bn to £2.7bn over the same period.

Group pensions has grown by 50 per cent from £1.9bn to £2.9bn, while advised protection business has increased 22 per cent from £362m to £440m.

Direct new life and pensions business has almost doubled from £116m to £227m, due to sales of pre-paid funeral plans and over 50s cover.

Ascentric saw a 16 per cent drop in gross sales from £1.9bn to £1.6bn, though assets under administration grew 17 per cent from £10.1bn at the end of last year to £11.8bn as at 30 September.

Royal London Asset Management saw new inflows of £4.8bn, 92 per cent on the £2.5bn seen this time last year, driven by institutional business investing in the Fixed Income range.

Total group funds under management are up 20 per cent from £84.5bn to £101bn.

Royal London group chief executive Phil Loney says: “Increasingly individual pensions and drawdown should be regarded as a single sector because, following introduction of pension freedoms, the line between pension accumulation and the drawdown phase has blurred.

“Advisers are recommending a range of retirement income strategies for their clients and this has consistently generated rising levels of new business for Royal London.”