Pension News Scottish Widows Offers Pension Golden Handcuffs
23 March 2006
Scottish Widows has become the first pension company in the UK to offer its policy holders a loyalty bonus this week.
Depending on the size of the policy holder’s fund and the length of time he or she has been with the company, Scottish Widows will pay a windfall bonus of up to £12,000.
The offer is only open to customers holding policies prior to “A Day” (April 1), and those who take retirement benefits five years or more before their initially chosen date will also be disqualified.
Scottish Widows regards the length of time for which customers stay with their chosen providers is a long-term issue for the pensions industry.
Alison Morris, head of commercial management, declared: “We will guarantee the bonus if qualifying policyholders stay with us until retirement age.”
To qualify for the maximum £12,000 bonus, a policy holder would need to have amassed a pension pot of around £200,000, and been with Scottish Widows for 20 years before retirement.