Partnership is axing 100 jobs as part of a cost-cutting exercise to save £21m a year.
The move follows a review of the company’s cost base as it expects annuity sales to remain low following the Budget.
The job losses will affect the London and Redhill offices. Staff entered into consultation last week.
Last month the provider introduced a recruitment freeze after it reported a 44 per cent year-on-year fall in individual annuity sales.
Partnership chief executive Steve Groves (pictured) says: “We have undertaken a thorough review of our cost base and are targeting annualised cost savings of £21m in 2015 compared with our planned 2015 cost base. This takes into account the anticipated impact of lower levels of individual annuity sales, offset by targeted investment on areas where we believe the greatest opportunities lie to leverage our intellectual property and expertise.
“It is our intention the decisive action we have announced today will deliver the necessary alignment of our cost base for the business to thrive in our new environment.”
Retirement Specialist chartered financial planner James Garman says he expects more cuts like this, but adds it may be what the sector needs.
He says: “Providers will adapt what they do. This should hopefully lead to them being a bit more innovative and having to work harder to provide better products.”
Plutus Wealth Management chartered financial planner Tom Dean says: “I did not think the market would change much because those with smaller pots still want the certainty of annuities. But if the providers are missing out on the six-figure sums that will have a pretty fierce effect on their revenue.”