Wealth Manager - the site for professional investment managers

Register to get unlimited access to 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
Play Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: change is the only constant for Quilter Cheviot

Profile: change is the only constant for Quilter Cheviot

This is not the first time we have profiled David Miller, but at the time of his previous appearance his company looked very different.

Wealth Manager on Twitter