Partnership will launch a “low-cost” guaranteed drawdown product next month as the provider attempts to adapt its offering following the introduction of pension freedoms in April.
The product, called the Enhanced Retirement Account, will allow savers to combine a guaranteed annuity income with flexi-access drawdown through a single Sipp wrapper.
Customers can invest in eight Vanguard LifeStrategy funds and will also have access to an interest-bearing cash account and an Isa.
Total charges range from 0.47 per cent to 0.65 per cent.
Partnership managing director, retirement Andrew Megson says the annuity rate offered through the product will be the same as on its open market offering. In addition, he says the provider will take no margin on non-annuity investments.
Megson says: “This is different to anything else that is on the market because it is a truly bundled Sipp offering.
“If the customer doesn’t want to receive their guaranteed income, it just rolls up in the Sipp. So you can turn off and on the income, as opposed to a straightforward annuity where you just take the income.
“It has been very difficult to build but we now have a low-cost, flexible product to bring to market.
“We make absolutely zero margin on the Sipp part of this product. We understand guaranteed income and we feel we can add value there, but we have no track record of running Sipps.”
The product will initially only be available through advisers and Megson says the provider has “no plans” to sell it to customers on a non-advised basis.