Partnership scraps drawdown/annuity blended product

Pensions-savings-retirement-piggy bank

Partnership has scrapped its newly launched annuity drawdown hybrid following the merger with Just Retirement.

In September 2015 the annuity specialist announced it was to roll out the Enhanced Retirement Account in response to the pensions freedoms, which led to individual annuity sales plummeting.

The ERA allowed a guaranteed income held alongside the ability to invest in Vanguard funds with charges ranging between 0.43 per cent and 0.59 per cent.

However, following the merger with rival Just Retirement the ERA will be withdrawn from the market with effect from 12 August.

Just Retirement has a similar product, powered by GBST.

Existing customers are unaffected.

A Partnership spokeswoman says: “Following the merger between Just Retirement and Partnership in April, we announced the product strategy, whereby all guaranteed income for life business would be written using the Just Retirement Limited life company.

“An exception to this at the time was that Partnership would continue to offer the ERA product whilst our product integration work continued.

She adds: “We believe blended solutions will be a significant part of the retirement market in the future and we will be working to develop solutions to support advisers and their clients utilising the full capabilities of the combined JRP Group.

“We are progressing this work as part of our integration activity and will share further details with you in the future.”