A GUIDE TO BENEFICIARY

INCOME RELEASE

Pens

ion

Port

folio

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CONTENTS

Baffled by anything in this guide?

We’re an old-fashioned bunch and being helpful and straightforward are principles we’ve kept since the olden days. So if you have any questions about your plan, just get in touch. We’d love to hear from you.

03 WelcomeA few words from our CEO

04 More about your pensionA reminder of the benefits your pension offers

06 Share our successHow your ProfitShare works

08 Your optionsSorting out your financial future

10 Clear chargesProduct charges

11 Investing your savingsDeciding where to invest your retirement savings

13 Your plan online Getting to grips with your pension

14 Getting in touch Always on hand to help

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3

“You’re now a member of the UK’s largest mutual

life, pensions and investment company.”

Thank you for choosing Royal London.

When we first opened our doors in 1861, we wanted to help people to help themselves. And it’s been our way of thinking ever since.

Proud to be differentWe’re a different kind of financial services company because unlike our main competitors, we’re a mutual. This means we don’t have shareholders. Instead, we’re owned by you and our other members.

This means you can have your say on the future of our business by voting at our Annual General Meeting (AGM) and you’ll share in our success.

What’s so great about mutuality?Having no shareholders means we don’t have dividends to pay. Instead, we use our profits to boost your pension savings and provide you with better products and services.

I believe this has helped us build a strong reputation for providing an excellent service.

This guide tells you more about how your plan works and the benefits it offers. I hope it helps you get the most out of your retirement savings.

Isobel LangtonCEO, Royal London

Intermediary

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What is beneficiary Income Release?If someone dies before they’ve taken all of their retirement savings, their nominated beneficiary can transfer the amount available into a new pension plan.

The plan is set up in the beneficiary’s name and allows them to take income payments directly from the plan. This type of plan is also referred to as ‘beneficiary flexi-access drawdown’ or ‘nominee or successor drawdown’. We offer this through our Income Release product.

Your transfer is invested to help it growYou can stick with the investment you chose with the help of your financial adviser at the start of your plan, or refine it to suit your changing circumstances. Remember that investment returns are never guaranteed. So while your savings could grow, their value can also go down. This means you could get back less than you put into your plan.

Our investment options are reviewed by expertsThis helps make sure they meet their objectives. This ongoing governance comes at no extra cost to you.

Share our successWe’ll aim to give your retirement savings an extra boost by adding a share of our profits to your plan each year. So if we do well, so do you. We’ve called this your ProfitShare.

Take your retirement savings in a way that suits youIncome Release allows you to take regular or one-off income payments directly from your plan when you need it. Unlike an annuity, income payments are not guaranteed for the rest of your life. As the rest of your savings stay invested, both the income payments and the value of your plan may go down.

If you want a guaranteed income for life, you can use your retirement savings to buy an annuity.

MORE ABOUTYOUR PENSION

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SHARE OURSUCCESS

We want you to feel the benefit of being part of Royal London. So we’ll aim to boost your retirement savings by giving you a share of our profits each year.

How it works

We’ll review our financial strength and performance at the end of

each year.

1

We’ll work out if ProfitShare

can be awarded.

2

We’ll add any award to a separate

ProfitShare account within

your plan.

3

You can take the value of your ProfitShare

account with the rest of your retirement savings at any time.

5

You’ll see the value of your ProfitShare

account in your yearly statement

and our online service.

4

• ProfitShare awards will be based on the value of the retirement savings you have invested with us on the date they’re awarded.

• Each year, we’ll aim to award between 0.15% and 0.25% of the value of your plan. You could get more or less than this and there’s no guarantee that we’ll be able to award ProfitShare every year.

• ProfitShare awards will be applied in April each year as long as your plan was in force on 31 December the previous year and on the date the award is given.

• ProfitShare doesn’t count as a contribution, so it won’t reduce the level of tax-free contributions you can make to your plan each year.

• ProfitShare awards will be invested in the same investment choice as your other retirement savings.

• ProfitShare only applies to Core Investments.

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What’s the catch?There isn’t one. The ProfitShare you’re awarded will belong to you. We’ll never ask for it back.

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YOUR OPTIONS

If the thought of sorting out your financial future is leaving you feeling a little perplexed, then don’t worry, we’re here to help. Our plan has been designed to give you full flexibility over when you can start to take your retirement savings. Here you’ll find more information about your options.

Enjoy flexible access to your savingsIncome Release lets you take regular or one-off income payments directly from your plan, either when you first set up your plan or at some point in the future.

However, these income payments aren’t guaranteed for life.

Depending on the amount of income you’ve taken and the performance of your investments, both the value of your plan and any income payments you can take from it could reduce in the future. So it’s important to regularly review the income you take and the value of your fund to ensure it’s sustainable.

Remember you don’t have to take income payments directly from your plan – the choice is yours. This gives you greater control over your retirement savings.

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Having more control over your retirement savings means that you can:

• Take an income either monthly, quarterly, half-yearly or yearly.

• Change the frequency of your regular income payments.

• Receive one-off income payments at any time.

• Increase, reduce or stop your income payments.

Use our income management facilityIf you’re taking an income, you might want to think about using our income management facility – Income Tap. This invests in a low risk fund designed to help make income payments and can hold up to 60 months’ worth of income. To find out more download our Income Tap leaflet from royallondon.com.

Making your decisionDon’t worry if you haven’t made up your mind yet – your financial adviser can help you to decide.

Buy a secure incomeYou can turn your retirement savings into a regular income that’ll keep going for as long as you do, by buying a secure income. This is often called ‘an annuity’. Rates can change, so there’s no guarantee that they’ll be more favourable if you buy a secure income in the future. This means you could receive a lower income than you expected.

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CLEARCHARGES

Your chargesLike all pension providers, we apply a management charge for setting up and servicing your plan. However, as Income Release is part of Pension Portfolio, we’ve been able to minimise the charges you have to pay when taking benefits from your plan.

To access Income Release there’s an initial one-off charge which covers our costs in setting up and administering your Income Release Account. However depending on when you switch on Income Release and where you’re transferring your retirement savings from, we may not apply this charge.

Your financial adviser may agree an adviser charge with you to pay for the services they provide you with – both now and in the future. This agreement will be between you and your financial adviser. However, if you ask us to, we can deduct an adviser charge payment from your plan and pay it to your adviser.

Have a look at your Plan certificate for a breakdown of your plan charges. These charges are regularly reviewed and may change in the future.

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INVESTING YOURSAVINGS

Today there are more investment choices than ever before. While choice is a good thing, you might find it difficult to decide on the best option for you. Here are a few things to consider when deciding where to invest your retirement savings.

How much risk are you willing to take?Higher risk investments can help your money grow more. But there’s also a greater chance of losing money. And with lower risk investments, your money may not grow as much as you want it to. Remember that investment returns are never guaranteed. So while your savings could grow, their value can also go down. If your investments don’t perform as well as you’d hoped or you live longer than expected, your money could run out early.

You can get an idea of your attitude to risk by using our risk profiler at royallondon.com.

Choose from the Governed RangeThis consists of Lifestyle Strategies and Governed Portfolios.

• They’re made up of a mix of different investments.

• They take into account the time until your chosen pension date.

• They’re designed for different attitudes to risk.

If you’re taking income from your plan, we offer five Governed Retirement Income Portfolios (GRIPS), designed for people who want to take a regular income.

Each GRIP invests in a mix of equities, corporate bonds, medium index linked gilts, high yield bonds and property. They’re aligned to five risk profiles determined by your income needs and risk attitude.

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Choose from the fund rangeYou can access Royal London funds, managed by the Royal London Asset Management team, as well as funds managed by some of the world’s leading investment companies.

Find out moreFor more information about the full range of investment options available to you, read our Pension investment options guide.

Remember to check with your financial adviser before you make any investment decisions, as any changes could affect your plan’s performance. You should also remember that investment returns are never guaranteed. So while your savings could grow, their value can also go down. This means you could get back less than what you put into your plan.

Keep your plans on trackLike any plan, your pension needs to be reviewed regularly. It’s the only way you’ll know if your pension plans are on track.

HOW TOChange your investmentsIf you’re registered for our online service, you can change your investments online. Details on how to register for our online service are in the Your plan online section of this guide.

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YOUR PLANONLINE

Our secure online service is simple to use, quick and easy to access and available 24 hours a day, 7 days a week. So you’ll have round the clock access to your plan details.

Keeping trackOnce registered you can make changes to your investment choice and view a wide variety of information including:

• the value of your plan

• where your savings are invested

• details about your transfer payment

• the potential value of your plan in the future

• the value of your pension plan and your investment holdings

• investment information including fund performance and fund information

• projections of future benefits

• personal details such as your address.

HOW TO REGISTERRegistering for our online service can be completed in a few easy steps.

1. Have your plan number to hand.

2. Go to royallondon.com/onlineservice.

3. Complete your personal details and click ‘Continue’.

4. Enter your email and password.

5. Select three different memorable questions and answer them, then click ‘Continue’.

6. You’ll then be sent an email to activate your account. Click the ‘Activate account’ link which will take you to the final step to enter your password.

Once you register, you’re ready to go – all you need to do is log in

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Providing an excellent service is our bread and butter. That’s why our Customer Service team is always on hand to help.

You’ll find the contact details for our central Customer Service team in your Plan details.

They can provide you with any information you need about your plan but they won’t be able to give you any financial advice. You should always contact your financial adviser first if you have any questions about your plan or your financial situation.

GETTING IN TOUCH

PLAN DETAILS Please tell us this number if you contact usYour plan number: 2800000

14 September 2015

Questions?Contact us on:

0345 60 50 050 Mon- Fri, 8.00am - 6.00pm

We may monitor calls toimprove our service.

PP1@royallondon.com

royallondon.com/pensions

Here to helpWe'll use this margin toexplain some of the termswe've used.

Tax reliefYou get tax relief onyour regular and singlecontributions at the currentbasic rate. This meansthat each time you make acontribution into your plan,so will the taxman. If you payhigher rate income tax, youmay be able to claim extra taxrelief through your tax returnor by contacting your localtax office. Tax relief rates areset by the Government, aresubject to change and are notguaranteed.

Plan detailspage 1 of 6 NB04/999999//0

This document tells you how your plan has been set up. The following contributions havebeen set up under your plan:· Regular contributions

1 YOUR DETAILS

Mr David Wilson

Plan number:Plan type:Plan start date:Yearly statement date:Chosen retirement date:

2800000 Pension Portfolio with Income Release20 December 2015 20 December1 April 2030

2 CONTRIBUTIONS INTO YOUR PLAN

Regular contributions into your planFirst contribution: 20 December 2015

Expected monthly contribution: £250.00Made up ofYour contribution: £200.00Your tax relief: £50.00

Direct Debit informationWe will collect £200.00 on or around 1 December 2015 by Direct Debit and £250.00 on oraround the 1st of the month from then on.

3 ANNUAL ALLOWANCE

There is a limit on the amount of contributions you can make to a plan in any tax year,without being subject to a tax charge. This is known as the Annual Allowance.

If you take income or a cash lump sum from any plan, the total amount of contributions youcan make in any tax year, without being subject to a tax charge, may be limited by the MoneyPurchase Annual Allowance.

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September 2018 65B12/2

Royal London1 Thistle Street, Edinburgh EH2 1DG

royallondon.com

All literature about products that carry the Royal London brand is available in large print format on request to the Marketing Department at

Royal London, 1 Thistle Street, Edinburgh EH2 1DG. All of our printed products are produced on stock which is from FSC® certified forests.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial

Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL. Royal London Marketing Limited is authorised and regulated by the Financial Conduct Authority and introduces Royal London’s customers

to other insurance companies. The firm is on the Financial Services Register, registration number 302391. Registered in England and Wales number 4414137. Registered office: 55 Gracechurch Street, London, EC3V 0RL. Royal London Corporate Pension Services Limited is authorised and regulated by the Financial Conduct Authority and

provides pension services. The firm is on the Financial Services Register, registration number 460304. Registered in England and Wales number 5817049. Registered office: 55 Gracechurch Street, London, EC3V 0RL.