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Partnership sales plummet 70% after Budget bombshell

Partnership has seen a 70 per cent drop in sales in the wake of the Budget bombshell on pensions freedoms.

In its Q3 interim management statement, published today, total new business was £89m in the three months to September, compared to £300m in the same period last year.

Individual annuity sales plunged from £260m to just £68m over the same period.

Defined benefit bulk annuity sales have fallen to zero after growing as high as £49m in the three months to December last year.

Partnership annuity sales have been falling steadily since the Budget in March when the Treasury said anyone over 55 could have full access to their pension and not default into an annuity.

Partnership chief executive Steve Groves says he expect “continuing disruption” as customers are deferring annuity purchase decisions.

He says: “Our focus on diversifying our business model and positioning it for the new retirement market is undiminished; our pipeline of defined benefit transactions continues to grow but remains lumpy as Q3 has demonstrated, sales of care and protection products are unaffected, and, although the timing of any international expansion remains uncertain, our discussions with potential partners to deploy Partnership’s unique intellectual property in the United States are progressing well.

”I expect market disruption and uncertainty to prevail in the short term, but I remain confident that by leveraging our core competences, we will achieve our long term goal of delivering a diversified, growth business over time.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Well they’ve got in excess of £100,000 of my pension cash that i can’t get my hands on due to misinformation back in 2008 from them and Tenet. I’m sure they are investing that nicely for themselves!!!!

  2. @Tricky D, were you offered a drawdown option?

  3. As good practice, as part of our fact finding and advice process, we have always as a firm explained Trivial pensions (when eligible), annuities versus drawdown and the various hybrids available and since 2007, the meeting has been recorded and any notes taken scanned so we can show that other methods have been explained to a client before we have recommended what we thought most appropriate for the client based on their attitude to risk, capacity for loss and other factors including other income sources.
    as a result we have a real mixture of clients with drawdown and annuities.
    For us, the new rules will mean very little difference in how we explain things and to a great extent, it will not change whether we recommend a secure lifetime income or drawing down on the capital as the clients needs have not changed just because the legislation has.
    What we may find change however is HOW that income is secured, with increased accessing of monies through a drawdown contract after paying tax and then placing sums in areas with insured lifetime income outside pension wrappers.
    Unfortunate for Tricky D, I know, but it doesn’t mean the advice was wrong at the time, nor that it would be any different now.

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