Product review: Just Retirement annuity

Pension provider Just Retirement has launched an ‘immediate needs’ annuity product for those facing long-term care costs.

In partnership with the Saga Group, the Care Funding Plan aims to provide a regular income stream in return for a one-off payment.

It is designed to help the elderly handle the costs of care in response to the Government’s Care Bill.

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To qualify for the product, Just Retirement says the person claiming must be at least 60 years old and must be receiving - or about to receive - long-term care from a registered provider. This must be due to a physical impairment or mental disability, which is expected to be permanent.

The minimum purchase is £5,000. Should the client die in the first month of the plan, Just Retirement will pay their estate the full purchase price, not including any advice fees, less any income previously paid.

It is being trialled through a pilot group of advisers and is expected to roll out to the wider market over the next few months.


Care costs are extortionate, so any product aimed to help the elderly prepare for the expenses that may be about to hit them has surely got to be a good thing.

The government’s proposed Care Bill, which was introduced in May 2013, means the elderly will be responsible for care costs up to a £72,000 cap if they can afford it, which will be means-tested. This is a huge amount of money, especially for those living on a mere £110 a week pension.

Just Retirement is only the third provider to launch such a product, after Friends Life and Partnership. Surely we should be encouraging more to do the same and help the elderly.