Partnership is the latest provider to announce changes to its annuity products following the introduction of the pension freedoms this week.
It has increased the maximum guarantee period to 20 years – prior to the reforms this was restricted to 10 years – and will quote on value protection up to 100 per cent of the original premium with no restriction of the benefit at age 75.
Following changes to the ‘death tax’ on pensions, value protected annuities are passed on tax-free if the annuitant dies before the age of 75 and are taxed at the marginal rate of the beneficiary if death occurs over 75.
In addition, annuitants can now nominate anyone between 40 and 100-years-old to be the beneficiary.
The provider will be offering “benefit based quotes” where customers can ask to be told how much they would need to pay to guarantee a certain level of income.
This development follows a Partnership survey of 3,600 40 to 70-year-olds which found 38 per cent do not know how to work out a budget for retirement.
Partnership retirement managing director Andrew Megson says: “While we recognise that many wish to explore the new opportunities they have been offered, 64 per cent of people still want a guaranteed income for life.
“Therefore, we are now providing benefit based quotes which mean that people can determine what guaranteed income they need in retirement and what proportion of their pension pot they need to pay for this. It might sound relatively simple but clients who understand their guaranteed income needs and provide for them will set the foundations for peace of mind in retirement.”