Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Partnership annuity business falls 50% after Budget

Partnership annuity business falls 50% after Budget

Annuity enquiries at pension specialist Partnership Assurance fell 50% following the Budget in one of the first concrete signs of the damage liberalisation could do to the industry.

The announcement that pensioners would no longer be required to buy an annuity at retirement ‘has caused significant disruption to Partnership’s core market,’ the company said in a statement.

It noted that of the ongoing business pipeline at the time time of the Budget in March, 70% of customers had gone on to buy an annuity, however.

‘Partnership has taken immediate action to manage its cost base in the short term, including freezing recruitment, removing contractors where possible and requiring [chief financial officer] approval for all capital spend’, it added.  

Shares in the business plummeted almost 60% in mid-March after chancellor George Osborne surprised the industry by saying retirees would be allowed to choose how to spend their pensions.

Chief executive Steve Groves nonetheless struck a bullish tone. ‘The Budget has provided us with more flexibility to innovate, whilst continuing to give our customers the financial security they desire in their retirement,’ he said.

‘It is still early days in the post-Budget world, but I am encouraged by the recognition by customers and advisers that the guaranteed income for life provided by our annuities, which typically pay an annuity rate of 6 - 7%, continues to be attractive.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Brewin's Gutteridge & Foster talk property with Standard Life's Baggaley

Gutteridge and Foster discuss UK commercial property with Jason Baggaley, manager of the Standard Life Property Income investment trust

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Brewin's Gutteridge asks Odey's Tim Bond two tough questions

Gutteridge puts the heat on Odey's asset allocation maestro with a couple of tough questions.

Brewin's Foster & Gutteridge: searching for the yield of dreams

Brewin's Foster & Gutteridge: searching for the yield of dreams

Guy Foster and Ben Gutteridge discuss the latest upbeat US payroll report and how it has increased the probability of a first hike in interest rates in June.

Your Business: Cover Star Club

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Profile: Creechurch Capital’s CEO on going the extra mile in a crowded market

Growing a business is the main aim of many company owners but managing that growth in a controlled way is just as important

Wealth Manager on Twitter