Partnership has today (23 November) announced its Enhanced Retirement Account can now accept crystallised as well as uncrystallised pension pots.
The plan, which launched in September, is a self-invested personal pension that contains a flexible investment element (flexi-access drawdown account) offering a choice of investment funds and a cash account as well as a guaranteed element (an annuity).
It is aimed at people who have health or lifestyle issues at retirement, and this move means people who have already accessed their pension pot can now use this hybrid product.
Andrew Megson, managing director of retirement at Partnership, said: “When we announced the launch of ERA at the end of September, it was the first of its kind and we have been working very hard to educate the market about the potential benefits it offers consumers.
“Speaking to intermediaries, we found that there was a real demand for this type of product from customers who may already have accessed their pension pot under the pension freedoms but now wanted a guaranteed income with some drawdown flexibility.
“We are therefore delighted to announce that ERA is now available to those with crystallised as well as uncrystallised pension pots.”
David Trenner, technical director at Intelligent Pensions, said: “This is a market that is developing, and although Partnership were first off the blocks, Retirement Advantage (formerly MGM) have now launched and their offering includes drawdown to drawdown transfers i.e. they can accept crystallised and uncrystallised funds.
“It comes as no surprise therefore that Partnership have added crystallised funds to catch up with this new development.
“Drawdown should never be seen as a once only decision and we are strong believers in the concept of having an exit strategy for those in drawdown, who can benefit from mortality subsidy as they get older by buying some form of annuity.
“It is always easier once a product is launched to see what features should be added, and Partnership have taken the sensible decision to add this feature which allows advisers to de-risk existing drawdown clients, to provide tax efficient inter-generational planning and to assist older drawdown customers who want a gradual exit strategy.”
ruth.gillbe@ft.com