Royal London cuts final bonuses

bonus rates drop on pensions policies but company insists they are still good value for investors

Royal London has cut terminal bonuses on life and pensions with-profits policies in the closed Scottish Life fund. On a 25-year conventional with-profits life policy, for example, the final bonus has fallen from 45% to 37.25% from 1 September, dropping from 25% to 19.75% on a pension policy of the same length. Rates have fallen on 15, 20 and 25-year with-profits investments across the group's life and pension policies. Group finance director Stephen Shone said this reduction is a result of an increase in liabilities relating to guarantees applying to certain policies in the fund, reducin...