The promotion is available to both new and existing Lloyds pension customers
Lloyds Bank is providing customers with up to £5,000 in cash through what it describes as its first-ever pension transfer cashback promotion.
The striking incentive represents the latest development in the intense competition for Britain’s retirement savings, with banks and investment companies increasingly pursuing savers with substantial pension pots. Under the arrangement, customers who move old pensions valued at a minimum of £20,000 into a Lloyds Ready-Made Pension or Self-Invested Personal Pension (SIPP) can receive cashback payments between £250 and £5,000. The top payout, however, is reserved exclusively for customers transferring £2million or above, while those shifting between £20,000 and £49,999 will get £250.
The promotion runs from June 1 until November 30 and is available to both new and existing Lloyds pension customers. To be eligible, savers must also maintain or establish a current account with Lloyds, Halifax or Bank of Scotland and keep it active until the cashback is issued.
The transferred pension funds must stay invested until May 31 2027, with cashback scheduled to be paid by June 30 next year.
The initiative aims to encourage customers to bring together old pension pots accumulated throughout their careers. Many people build up multiple workplace pensions as they change employers, making it more difficult to monitor their retirement savings and the fees they’re being charged.
However, pension specialists frequently caution savers to consider carefully before moving retirement funds, as some older schemes may include valuable guarantees, protected benefits or lower fees that could be forfeited. Pensions are also exposed to investment risk and the value of investments can decline as well as increase.
Manuel Pardavila-Gonzalez, managing director of investments at Lloyds, commented: “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.”
Customers consolidating between £50,000 and £99,999 can claim £500, increasing to £1,000 for transfers valued between £100,000 and £249,999. The cashback rises to £1,500 for transfers of £250,000 to £499,999 and £3,000 for those valued between £500,000 and £999,999.
Anyone transferring between £1million and £1.99million can claim £4,000, while those moving £2million or more qualify for the maximum £5,000 payment.
