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Royal London Pension Plans

Royal London has now entered the Irish pension market. They have introduced a number of new pension products to offer consumers more choice and increase competition in the Irish pension market.

About Royal London Pensions

Royal London has a history of over 190 years working in Ireland. (Previously trading as Caledonian Life).

As of December 2021, Royal London has €195 billion in Group funds under management. They over strong customer service with a focus on innovation, pricing and transparency.

Royal London only work through Brokers & Financial Advisors. Royal London launched two pension products in 2022. An approved retirement fund (ARF) and a personal retirement bond (PRB).

Royal London Pension Benefits.

Benefits of Royal London Pensions

  • ValueShare is unique to Royal London Ireland – when Royal London Ireland does well, they’ll look to boost your savings with an additional payment, on top of your fund returns.
  • Tax free lump sum up to €200,000.
  • Tax free growth on your fund.
  • Secure in knowing your investment is with a strong business.
  • A (Stable) Counterparty Credit Rating from Standard & Poor’s (June 2021)
  • A2 (Stable) Insurance Financial Strength Rating from Moody’s
  • Wide range of investment options managed by Royal London Asset Management (RLAM) and BlackRock.

How Royal London Pensions Work

Contact us to start

Our qualified financial advisors will talk to you about your current financial situation, your future financial plans and what income in retirement you would like.

We’ll complete an attitude to risk assessment to make a recommendation on what Royal London pension product and funds would suit your life circumstances.

Setting up your pension

Once we’ve answered all your questions and you’ve made your choice on what pension you want, we’ll do all the paperwork to get your Royal London pension opened.

All you’ll have to do is provide your information, and digitally sign the application forms. Greenway works fully online saving you time and complications in getting your Royal London pension set up.

Your Pension Is Running

Royal London pensions have logins for their secure online portal. Here, you can make changes to your Royal London pension and monitor the growth of your fund.

If you need any help, or advice on making changes we’re here to answer your questions and provide advice.

We’ll contact you once a year to see how you are and if you have any questions.

What is a pension?

pension is an investment fund in which a pension member makes contributions during their lifetime. The goal is to save money in the long run and then use that money as income after retirement.

How do pensions grow?
Your pension contributions are invested in a wide range of funds. As the fund performance goes up and down, monitored by the fund managers, your pension value changes.

This gives your fund a great chance to beat the low rates of deposit interest, and reduce the effect of inflation on your pension.

You have full control of the level of risk of your fund. Normally the higher the risk level of the fund the higher the growth. However higher levels of risk mean you'll have greater volatility meaning your investment may lose money as well.

Growing your Pension - Income Tax Relief

When you’re saving and building your pension fund through monthly contributions or annual contributions you save on income tax. This makes a pension the best value long-term savings product.

Example 1:

  • 35 years old earning €35,000 per year.
  • Contributing €200 gross every month into a pension.
  • After tax reliefs this only costs €161 per month.
  • Saving €40 on every contribution (20% saving).

Example 2:

  • 45 years old earning €50,000 per year.
  • Contributing €200 gross every month into a pension.
  • After tax reliefs this only costs €118 per month.
  • Saving €78 on every contribution (39% saving).

Example 3:

  • 55 years old earning €50,000 per year.
  • Contributing €300 gross every month into a pension.
  • After tax reliefs this only costs €180 per month.
  • Saving €120 on every contribution (40% saving).

 

Growing your Pension - Tax Free Growth

Your fund grows tax-free until you take your pension benefits. This is the only kind of investment account that can do this.

On Retirement - Tax Free Lump Sum

When you retire, you can take a tax-free lump sum of up to 25% of your fund.

You then decide to invest the remaining funds in an Approved Retirement Fund (ARF) or an Annuity.

On retirement - ARF or Annuity?

When you retire you need to decide what to do with your pension fund.

You can take the money from the fund, but you will have to pay income tax on anything above the 25% tax-free lump sum amount. This will remove all the good you did in building your fund in the first place!

Luckily there are 2 other options available to you.

Option 1: Approved Retirement Fund (ARF)
An ARF is a post-retirement investment fund. The goal of the fund is to continue to grow the money you invest in the ARF. Like pensions, there is no tax on the growth of the fund.

You can access your funds in a flexible manner and many people with ARFs withdraw the growth gained in the calendar year leaving the balance to grow again the next year.

You do pay income tax, USC and PRSI (if applicable) on any withdrawals from your ARF.

Option 2: Annuity.
An Annuity is a regular income for the rest of your life. It provides a guaranteed income for your retirement. It is a lifetime income attached to one person. Annuities can be a good option for those who want a guaranteed income, but be careful when exploring how these are inherited by spouses.

What Products do Royal London Pensions offer?
Royal London Personal Retirement Pension

Pre-Retirement - While You're Working

Personal Retirement Bond (PRB) receives a single contribution – typically a transfer payment from your current/previous pension scheme or another PRB.

A Royal London Personal Retirement Bond (PRB) may suit you if:

  • PRBs are not used for regular monthly or annual contributions.
  • Good if you are leaving your job, leaving your current pension scheme or if your company’s pension scheme is winding up.
  • Looking to invest €10,000 or more.
  • Gives you control of your pension.
  • You choose how to invest from Royal London’s range of funds.
  • Any growth your investments make is tax-free.
Royal London Approved Retirement Fund

Post-Retirement - When You've Retired

An Approved Retirement Fund (ARF) is a flexible arrangement that allows you to remain invested in funds after retirement and withdraw money as and when you want.

A Royal London ARF may suit you if

  • You want to pass on the money in your
    ARF to your family when you die.
  • You have taken a tax-free cash lump sum of up to 25% of the pension fund value and now want to invest the remaining balance.
  • You’re looking to invest €30,000
    or more.
  • You can accept that the value of your
    fund could fall as well as rise.
  • You would like to take a regular
    withdrawal each year.
  • Gives you personal control of your ARF and the income you take.
  • Choose how to invest your funds.
  • Any growth is tax-free – you do pay tax on widthdrawls.
About Greenway Pensions

At Greenway, we bring together our knowledge, experience and efficiency to our customers. We’ll help you find the right path or products, and even better, you’ll know why, and how to use it.

Our financial advice is tailored to each individual needs and situation. Our goal is to help our customers reach financial independence and better their lifestyles.

Most importantly, your policy or plan should fit your life, and your financial advisor should fit into your lifestyle.

We build long term relationships with our customers. As your life circumstances change we will be there to advise you about changing and adjusting your policies.

greenway pension providers 2023
  • Warning: Past performance is not a reliable guide to future performance.
  • Warning: This product may be affected by changes in currency exchange rates.
  • Warning: The value of your investment may go down as well as up.
  • Warning: If you invest in this product you may lose some or all of the money you invest.
  • Warning: If you invest in this product you will not have access to your money until you retire.

Greenway Financial Advisors Limited is regulated by the Central Bank of Ireland. Registered No. C168372