We know from research that one of the major priorities for retirement income is that it should be secure until death.
A recent Partnership survey showed that two-thirds of people (66.9%) at retirement would pick a guarantee that income would be received for life1. This answer is consistent with other surveys from NEST2, ILC-UK3 in 2015 and tends to suggest that clients do like the concept of annuities.
We know from research that one of the major priorities for retirement income is that it should be secure until death.
A recent Partnership survey showed that two-thirds of people (66.9%) at retirement would pick a guarantee that income would be received for life1. This answer is consistent with other surveys from NEST2, ILC-UK3 in 2015 and tends to suggest that clients do like the concept of annuities.
The attraction of an income that can be relied upon for life with no risk can be clearly appreciated when you consider the position of many in retirement. Additionally, the ability to guarantee an income to dependants can make for a more comfortable retirement, focusing on the things they enjoy rather than where the next pound is coming from.
15.8% of respondents would choose a solution structured to minimise the amount of tax they pay and 9.6% wanted a product that would allow them to leave an inheritance to their family.
Understanding of the issues involved is likely to lead many to conclude that an annuity, or guaranteed income for life, remains the best way of providing for much of their retirement income: it offers security and the certainty that payments will continue for the rest of their lives and, for the majority of retirees, is likely to be amongst the most tax efficient ways of drawing income from their pension*. Annuities are now able to offer much more flexibility, with significantly extended guarantee periods and value protection to pay a lump sum.
Partnership’s enhanced annuity provides income security at the right cost by taking into account a client’s health and lifestyle factors. Individual underwriting can increase income by a significant amount and more than 60% of people could qualify, giving them an increased income if security is their main concern and more money to invest flexibly if they have some other purpose in mind4.
Spouse’s or dependant’s pension and guaranteed payment periods of up to 20 years help ensure that income can continue securely to those that need it in the event of early death. Value protection can take care of inheritance and value considerations by providing a lump sum on death in a tax-efficient manner*.
For more information or to request a quote to see the benefits a Partnership enhanced annuity can offer, contact us on 0333 043 7008** or sandc@partnership.co.uk.
*Taxation is dependent on individual circumstance sand subject to change.
**Telephone calls are recorded for training and monitoring. Local call rates apply.
1 Partnership, August 2015. A survey was conducted on 1,168 adults aged 45 and over living in the UK
2 “The Future of Retirement: a retirement income blueprint for NEST’s members” 2015
3 “Making the system fit for purpose: How consumer appetite for secure retirement income could be supported by the pension reforms:” ILC-UK, January 2015
4 ABI QLB Statistics, Q2 2015
Partnership is a trading style of the Partnership Group of Companies, which includes: Partnership Assurance Group plc (registered in England and Wales No. 08419490), Partnership Life Assurance Company Limited (registered in England and Wales No. 05465261), and Partnership Home Loans Limited (registered in England and Wales No. 05108846).
Partnership Life Assurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Partnership Home Loans Limited is authorised and regulated by the Financial Conduct Authority. The registered office for these companies is 5th Floor, 110 Bishopsgate, London, EC2N 4AY.