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Partnership extends annuity guarantee and cancellations period

Partnership has extended its annuity guarantee and cancellation periods following the reforms announced in the Budget this week.

Chancellor George Osborne set out on Wednesday that from April next year, people will be able to take their entire pension pot as cash from aged 55.

Following the move, Partnership has decided to extend its 30-day cancellation period, with any new business accepted after 3 March given until 11 April as a cooling-off period. Any quotes currently within the guarantee period will be extended to the same date.

The firm says this will “give consumers who are currently annuitising the opportunity to review the wide-ranging changes with their advisers and make the best decision for their individual circumstances.”

Partnership managing director of retirement Andrew Megson says: “The Chancellor unveiled a series of changes that will have an impact on people’s choices at retirement.  We believe it is vital for people who are currently annuitising to have the opportunity to review what this means for them and then discuss this with their adviser before making their final decision.

“The security and regular income offered by an enhanced annuity is still likely to be attractive to many. But choice is important and we want to offer our customers the reassurance they have fully explored all their options and found the right one for them.”

Partnership’s extension of the cancellation period follows a similar move by LV=, which yesterday doubled its cancellation period to 60 days.

Providers saw billions wiped off the share pries on Wednesday, with Partnership seeing its share price fall by 55 per cent.

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