Royal London chops final bonus rates on with-profits

Royal London has cut terminal bonuses on life and pensions with-profits policies in its 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 and has dropped 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, r...