Royal London drawdown sales spike

A spike in drawdown sales has helped Royal London report a 68 per cent increase in individual pension business.

The provider says that as “customers continued to take advantage of the pension freedoms”, new business sales of individual pensions including income drawdown in 2017 grew from £3.8bn to £6.3bn.

Royal London chief executive Phil Loney says: “Royal London’s drawdown proposition served us well during a time when low interest rates made this type of product the retirement vehicle of choice.”

Sales of protection by advisers were also up 25 per cent to £807m, the company says.

Royal London claimed its platform Ascentric attracted “record inflows” on the back of a pricing change in February last year as it moved to a single standard account charge and scrapped trading fees.

The platform now has £14.4bn in assets under management, today’s results show.

However, Loney acknowledged that headwinds lay ahead for the company. For example, the company is predicting a fall in workplace pension sales as the initial stages of auto-enrolment complete.

Loney called for a period of stability in pension tax relief to continue supporting customers in saving, as the escalation of auto-enrolment will still not provide enough contributions for many people’s pensions.

He says: “Pensions tax relief has been subject to no less than six cuts in the last seven years and we are asking the government to commit to a five-year moratorium on further changes. This would help to support consumer confidence in pensions just at the time that employer and employee contribution rates are set to increase as part of the auto-enrolment project.”



Champagne fraudster gets another 16 months in jail for contempt

An investment fraudster who lied to the courts has been given an additional 16-month prison sentence for perverting the course of justice. Alex Hope, dubbed a ‘champagne fraudster’ after spending investors’s money on a lavish lifestyle, took more than £5.5m from savers through an unauthorised collective investment scheme. In February 2016, Hope was given three […]


Hot Money: Assessing three years of pension freedoms

As the pension freedoms approach their third anniversary, advisers are reflecting on how the watershed policy has affected both their businesses and their clients. Clients have benefited from being able to access flexible drawdown and to use their pension to help fund inheritance. They are able to transfer out of defined benefit schemes and are […]

FCA logo new 3 620x430

FCA to reveal final rules for asset managers

The FCA is to publish its final verdict on the UK asset management market next week. In its final report on the asset management market, published in June, the regulator proposed a series of reforms, including an “all-in fee” for funds, greater clarity on charges and easier switching into better-value share classes for retail investors. Along with the report, […]


Aviva Investors confirms end of trail commission

Renewal and trail commission is being traded in for a single fee for advisers using Aviva-branded funds from 30 June. Norwood Financial Services partner David Frost contacted Money Marketing saying advisers were not duly warned of the changes by Aviva Investors before being contacted on 7 February. Frost says: “I do not recall anything that allows […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment