Lloyds Banking Group has launched its first ever pension transfer cashback boost, offering customers up to £5,000. The promotion, which began on June 1 and continues through to November 30, hopes to help savers consolidate their retirement pots.
To qualify, people must move at least £20,000 from existing pension arrangements into a Lloyds Ready-Made Pension or Self-Invested Personal Pension (SIPP). A Lloyds, Halifax or Bank of Scotland current account must be held or opened during the offer period for the cashback to be credited. The money will be paid into accounts by June 30 next year.
The cashback amount depends on the amount transferred. For instance, between £20,000 and £49,999 earns £250, £50,000 and £99,999 earns £500, and £100,000 and £249,999 earns £1,000. Meanwhile, transferring between £250,000 and £499,999 earns £1,500, £500,000 and £999,999 earns £3,000, £1,000,000 and £1,999,999 earns £4,000, and anything over £2,000,000 earns £5,000 cashback.
The transferred pension funds stay invested in the Lloyds pension products until the end of next May. However, market value fluctuations will not impact reward eligibility.
Lloyds is urging customers to consider whether they might lose any guarantees or features if they proceed with the transfer. Pensions are subject to investment risk and cannot normally be accessed before minimum retirement age.
Manuel Pardavila-Gonzalez, Managing Director – Investments, Lloyds, said: “It is common for people to build up several pension pots over the course of their careers, which can make it harder to keep track of savings or understand the charges they are paying.
“Our personal pension aims to make it easier to bring those pots together in one place, giving customers a clearer view of their retirement savings. Bringing pensions together can also help them take a more active role in managing their money, making it simpler and easier to plan for retirement, with our cashback incentive making the process even more rewarding.”
The Lloyds Ready-Made Pension is a simple, expertly‑managed personal pension designed for customers who want a simple way to save and plan for their retirement. Meanwhile, the Lloyds Self-Invested Personal Pension gives customers greater control over their investments, with a wide range of investment options to build their own portfolio.