How to Increase Your Contributions to Your Lifestyle Royal London Pension is one of the most powerful moves you can make for your future self - especially if you’re aiming for a comfortable, flexible retirement that matches the lifestyle you want, not just the one you can afford. Many people assume their workplace pension is set in stone, but the truth is, you have far more control over your Royal London Lifestyle Pension than you might think. Whether you’re in your 30s and just starting out, or in your 50s and looking to boost your final pot, increasing your contributions isn’t just about saving more - it’s about making smarter, more intentional choices with your money.
Understanding the Basics of Your Royal London Lifestyle Pension
What Is a Lifestyle Pension?
Your Royal London Lifestyle Pension is a type of defined contribution pension plan designed to grow your savings over time, with investment options that automatically adjust as you get closer to retirement. Think of it like a smart savings account that starts off aggressive (more stocks, higher growth potential) and gradually shifts to safer assets (bonds, cash) as you near your target retirement age. This is called a ‘lifestyling’ strategy - and it’s built right in, so you don’t have to manage it yourself.
How It Works: Contributions, Employer Match, and Tax Relief
Every time you put money into your Royal London Lifestyle Pension, three things happen:
- You contribute your own money (from your salary)
- Your employer contributes too (at least 3% of your qualifying earnings, by law)
- The government gives you tax relief - meaning for every £80 you pay, the government adds £20, making it £100
That’s free money from two sources - your employer and the state. Not contributing fully is like leaving cash on the table every month. If you earn £30,000 and only pay 5% into your pension, you’re missing out on at least £1,500 in employer contributions and £375 in tax relief annually. Increase your contribution to 8%, and you’re adding over £2,400 a year to your retirement pot - without feeling the pinch.
How It Differs from Other Pensions
Compared to a standard workplace pension, the Royal London Lifestyle Pension stands out because of its automatic investment transition. Other plans might leave you stuck in high-risk investments too late, or require you to manually adjust your portfolio. With Royal London, it’s handled for you. Plus, the platform offers a wide range of ethical and ESG-focused funds - ideal if you care about where your money is invested.
| Feature | Royal London Lifestyle Pension | Standard Workplace Pension |
|---|---|---|
| Automatic Investment Transition | Yes - adjusts based on age | No - you must manage it |
| ESG/ethical fund options | Yes - multiple choices | Often limited or none |
| Online management tools | Advanced dashboard, projections, goal tracking | Basic portal, limited insights |
| Flexibility to change contributions | Easy to adjust online anytime | May require paperwork or HR approval |
Who Can Benefit from This Pension?
Anyone with a workplace pension in the UK can benefit - but it’s especially powerful for:
- People who want to retire early or part-time
- Those who want their savings to align with personal values (sustainability, social impact)
- Employees who don’t want to micromanage investments
- Self-employed people who’ve rolled over a previous pension into Royal London
If you’re unsure whether you’re in this plan, check your payslip - your pension contribution will be listed as ‘Royal London Lifestyle Pension’ or ‘RLP’. If you’re not sure, log into your account or call Royal London’s member services. It’s worth confirming - you might be surprised how much room you have to grow.
Benefits of Increasing Your Contributions
Compound Growth: The Real Powerhouse
Money invested early grows faster because of compound interest. Let’s say you’re 35 and increase your contribution from 5% to 8% of your £40,000 salary. That’s an extra £1,200 a year. If that money grows at an average of 5% annually (a conservative estimate), by age 67, you’ll have added over £100,000 to your pension - just from that 3% increase. That’s not a bonus. That’s a new car, a trip around the world, or extra months of freedom in retirement.
Higher Retirement Income = More Lifestyle Freedom
Your pension isn’t just about survival - it’s about choice. If you’re aiming for a retirement where you can travel, take up hobbies, help family, or downsize without stress, you need more than the state pension. The average UK retirement income is around £19,000 a year. But if you want to live comfortably - say, take two holidays a year, eat out occasionally, and cover heating bills - you’ll need closer to £30,000. Every extra pound you contribute now shrinks that gap.
Tax Efficiency: More for Less
Contributing to your pension is one of the most tax-efficient ways to save. Basic rate taxpayers get 20% tax relief automatically. Higher rate taxpayers get 40%, and additional rate taxpayers get 45% - but you have to claim the extra via your tax return. That means if you’re a higher rate taxpayer and you put in £1,000, it only costs you £600 out of pocket after tax relief. That’s a 67% discount on your savings.
Employer Match: Don’t Leave Free Money Behind
Some employers go beyond the legal minimum. If your company offers a 6% match for a 10% contribution, that’s a 60% return on your money before you even earn interest. That’s better than any savings account, crypto, or stock tip you’ll find. If your employer offers a matching tier, aim to hit it. It’s not ‘saving’ - it’s earning.
| Benefit | Description | Impact |
|---|---|---|
| Compound Growth | Early contributions grow exponentially over decades | Can double or triple your final pot |
| Tax Relief | Government adds money based on your tax rate | Up to 45% extra on every pound |
| Employer Match | Free money from your employer | Up to 6% of salary - no risk |
| Lifestyle Flexibility | More income in retirement = more freedom | Retire earlier, travel more, reduce stress |
How to Increase Your Contributions
Start Small, Think Big
You don’t need to jump from 5% to 12% overnight. Start with a 1% increase - that’s just £20 a month on a £2,000 salary. Set a reminder to review every six months. Each time you get a raise, put half of it into your pension. That way, you never feel the loss - but your future self gets a huge gain.
Use the Royal London Online Portal
Log in to your Royal London account. Go to ‘Manage Contributions’ and adjust your percentage. You can increase it instantly. You can even set up automatic increases tied to pay raises. No forms. No HR approval. Just a few clicks.
Check for Lump Sum Opportunities
Got a bonus? Tax refund? Inheritance? Consider putting 25-50% of it into your pension. Even £2,000 extra now can add £5,000-£8,000 to your pot by retirement, thanks to growth and tax relief. It’s not glamorous - but it’s the quiet hero of financial security.
Combine with ISA Savings
Don’t forget your ISA. If you’ve maxed out your pension contributions (up to £60,000 a year or 100% of your earnings, whichever is lower), any extra savings can go into a stocks and shares ISA. It’s tax-free growth too - and you can access it before 55, unlike your pension. Use both tools together for maximum flexibility.
Common Mistakes to Avoid
Waiting Until You’re ‘Ready’
There’s no perfect time. The longer you wait, the harder it gets. If you’re 45 and start saving 10%, you’ll need to put in nearly twice as much each month as someone who started at 30. Time is your biggest ally - don’t waste it waiting for ‘more money’.
Ignoring Employer Matching Limits
If your employer matches up to 8%, and you only put in 5%, you’re leaving 3% of free money on the table. That’s like refusing a raise.
Not Reviewing Your Fund Choices
Just because it’s ‘lifestyle’ doesn’t mean you’re locked in. You can switch funds at any time. If you’re worried about climate change, choose an ESG fund. If you want steady growth, pick a balanced option. Review your fund every 2-3 years.
FAQ: Common Questions About Increasing Your Royal London Pension Contributions
Can I increase my contributions at any time?
Yes. You can adjust your contribution percentage anytime through the Royal London online portal. There’s no waiting period, no penalty, and no paperwork. Even if you’ve changed jobs, as long as you’re still with Royal London, you can change your contribution level.
What’s the maximum I can contribute each year?
You can contribute up to £60,000 per year (the annual allowance) or 100% of your earnings, whichever is lower. If you earn £50,000, your max is £50,000. If you earn £80,000, you can still only contribute £60,000. Contributions above this may face tax charges, so check with a financial adviser if you’re near the limit.
Will increasing contributions affect my take-home pay?
It will, but less than you think. Because of tax relief, if you increase your contribution by £100 a month, your take-home pay only drops by £80 (for a basic rate taxpayer). The government adds £20. That’s a net cost of £80 for £100 in your pension.
Can I pause or reduce contributions later?
Yes. Life changes - a new baby, medical bills, job loss. You can reduce or pause contributions at any time. You can always restart later. The key is to keep going when you can. Even small contributions add up over time.
What happens if I change jobs?
If your new employer uses Royal London, your pension stays with them. If they use a different provider, you can leave your Royal London account where it is - it keeps growing. Or you can transfer it. Don’t cash it out. That’s a huge mistake. Leaving it alone or transferring it is almost always better.
Final Thoughts: Your Future Self Will Thank You
Increasing your Royal London Lifestyle Pension contributions isn’t about sacrifice. It’s about alignment. It’s about choosing the life you want - not the one you’re forced into. Every extra pound you save today gives you more control tomorrow. More freedom. Less worry. More options.
You don’t need to be rich to do this. You just need to start. Even £25 extra a month can change your retirement story. Log in today. Adjust your percentage. Set a reminder for next pay rise. Do one small thing now that your 70-year-old self will be grateful for.
Tried increasing your pension contributions? Share your experience in the comments!
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