Partnership has launched a 12-month enhanced annuity designed to give savers greater flexibility after Chancellor George Osborne announced a radical overhaul of pension tax rules.
The Budget reforms, which come into force from April next year, will provide savers with greater freedom over how they draw their pension pot from age 55.
Partnership’s new product, which is being offered exclusively through intermediaries, allows clients to exit the policy after a year if they want to move into drawdown or take their entire pot as cash.
However, the provider is also giving savers the option to stick with the annuity if after 12 months they decide this is the best option.
Partnership managing director of retirement Andrew Megson says: “Partnership has been campaigning for more consumer choice around retirement income for years and the recent Budget introduced what is arguably the biggest shake up of the system for a generation.
“This has provided us with an excellent opportunity to grow and innovate our product range to help people navigate this new landscape.
“However, these changes have also provided some significant challenges for the people who are retiring in the immediate future and their advisers.
“To help people navigate this uncertainty, we are launching the Enhanced Choice Annuity which provides the benefits of a lifetime annuity with the flexibility to cash in after 12-months if their circumstances change, interest rates rise or a better deal becomes available.”