Royal London, the country's largest member-owned pensions, investment and life assurance company, reported profits up 13 per cent to £187 million in the first half of the year, with assets under management reaching a record £212 billion. Chief executive Barry O'Dwyer, who has led the company since 2019, warned that financial strain extends far beyond low-income households, affecting even those earning substantial salaries.
According to Royal London's annual barometer of Britons' finances, more than four in ten people earning annual incomes of £150,000 to £200,000 are classified as 'economically exposed'. O'Dwyer attributed this to high commitments on mortgages and school fees. About a third of British adults overall are 'financially fragile' with low savings and limited ability to cope with unexpected costs, while only one in ten women and one in eight men qualify as 'robust and resilient'. The company's research shows that roughly one in ten Britons pay into a workplace pension through Royal London.
O'Dwyer emphasised the importance of mutuality as a business model, noting that about half the world's insurance is provided by mutual organisations, compared to just 10 per cent in the UK despite mutuals originating there. Royal London has distributed more than £2 billion in profits to eligible members since 2007, including £199 million this spring. The company completed pension scheme deals worth £1.3 billion in 2025, its first full year in that market, and plans to invest £100 million over the next three years to build technology to compete for larger employers' pension business.
O'Dwyer highlighted concerns about retirement savings adequacy, noting that most workers enrolled in pension schemes through automatic enrolment do not realise their savings levels are insufficient. A typical pension pot for someone approaching retirement stands at about £80,000. He warned that 'as a nation, we are under-saving for retirement' and expressed concern about how people will make their pension savings last through their lifetime. With defined benefit pension schemes disappearing from the private sector, this challenge will intensify over the next decade.
The company is expanding its services with new technology, including artificial intelligence tools to provide generalised guidance to customers who cannot afford regulated financial advice. Royal London's asset management division has voiced concerns about UK companies being sold too cheaply and takeovers depleting the stock market. O'Dwyer called for more certainty around the 'fundamental deal' on pensions, comprising tax relief on contributions and tax-free growth, describing the current financial environment as affecting 'pretty much everyone', particularly through rising mortgage rates.
For UK savers and pension holders, the findings indicate widespread financial vulnerability across income levels, with many unable to build adequate retirement savings despite strong employment participation in workplace pensions.