Millions to receive pension boost within days as major provider pays out £199million profit

Royal London is preparing to distribute £199million among 2.4million eligible customers through its annual ProfitShare scheme, with payments due on April 1.

Individual payouts will vary depending on the size of each customer’s pension or ISA holdings. If split evenly, the total would amount to around £80 per person.

The mutual provider said the distribution follows a strong performance in 2025, with operating profits rising by 18 per cent. As a customer-owned business, Royal London returns profits to members rather than external shareholders.

To qualify, customers must have opened a pension plan with Royal London after July 1, 2001.

The plan must have been active on December 31 and remain open until the payment date.

Those with stocks and shares ISAs taken out since 15 September 2025 are also eligible for the scheme.

Customers should note that the funds will not arrive as a direct cash payment. Instead, the money will be deposited into their pension pot, meaning it cannot be accessed immediately.

Recipients will need to keep their accounts open through 1 April to receive the bonus.

The ProfitShare payment will be automatically credited to a dedicated account within each customer's plan, requiring no action from recipients. This separate ProfitShare account sits alongside regular pension savings.

Customers can monitor their allocation through Royal London's mobile application, which also allows them to track contributions and project future values.

The funds become accessible when members reach 55, at which point they can withdraw their ProfitShare balance together with their other pension savings.

Royal London emphasises that its mutual structure shapes everyday business decisions, with customer ownership meaning profits flow to members rather than being distributed to shareholders.

Barry O'Dwyer, group chief executive officer, commented on the results: "We recorded another strong performance in 2025 with operating profit up 18 per cent, reflecting the positive momentum across our business."

He added: "We're owned by our customers and, when we do well, they share in our success."

The ProfitShare initiative has been running since 2007, during which time the company has returned a cumulative £2billion to its membership base.

Like Nationwide, Royal London operates as a mutual organisation, distinguishing it from publicly traded competitors whose profits benefit shareholders rather than customers.