Mutual provider Royal London is handing 2.4m of its customers a share of £199m in profits from today.
The payments will be made as part of the firm’s annual ProfitShare scheme.
The payments average out at £83 but the amount each person will get is based on the value of the pension or ISA savings they have invested, with payments being received from 1 April.
Profits last year were boosted by the company’s first full year in the bulk purchase annuities market, where it secured a series of key transactions.
It said its success was based on the fact that trustees and advisers, “valued the stability and long-term commitment that a mutual can offer.”
Barry O’Dwyer, group chief executive officer, said 2025 saw an increasing number of advisers using Royal London, helped by a broader savings products range including its individual and workplace pensions and a new Stocks and Shares ISA, which, like the firm’s pensions, qualifies for ProfitShare.
He said: “Workplace Pensions are core to our business, providing 2.2m customers with access to our flagship Governed Range investment portfolios.
“Our continued success and long-term focus as a mutual on customers are enabling us to invest £100m over the next three years to enhance our Workplace Pensions offer, allowing us to support an increasing number of employees with their retirement savings.”
Royal London is one of the UK’s largest mutual life, pensions and investment company and in the top 30 among mutuals globally, it says.
In January Royal London launched an inheritance tax hub for financial advisers. The digital resource is designed to support advisers through client conversations about inheritance tax planning.