Just Retirement Partnership to launch new propositions

Just Retirement Partnership to launch new propositions

Steve Lowe, director of communications at Just Retirement Partnership, said the firm is to bring "some exciting new propositions" to the market in 2017.

However Mr Lowe would not comment on what these exciting new propositions from the annuity provider would look like at the time this article was published.

It was back in April that annuity providers Just Retirement and Partnership Assurance relaunched on the London Stock Exchange as the merged JRP Group, with assets under management of £15bn.

JRP opened at £1.54 per share, with the company putting its market cap of £1.4bn.

The merger came two years after watching their shares plummet in value as then chancellor George Osborne scrapped the need for people to buy the annuity providers’ products.

Investors in Just Retirement and Partnership voted almost unanimously to back the merger.

Following the Budget, Partnership’s share price plummeted 60 per cent, falling from £3.19 to around £1.22 by the end of that week.

Just Retirement’s shares took a similar nose-dive, falling 48 per cent from £2.67 to £1.40.

Speaking to FTAdviser, Mr Lowe said April 2017 will be the second anniversary of pension freedoms and the industry is likely to see more trends emerging next year that will give better insight into the implications of providing people with relatively unfettered access to their retirement savings.

He said: "One of the customer segments that is of concern is those people with lower levels of retirement savings who have taken their entire pot as cash.

"These people are less likely to receive specialist financial advice and anecdotal evidence suggests they are being either profligate or excessively prudent.  

"The FCA’s new data collection initiatives should help us to better understand whether consumers are exposing themselves to risks that could be reduced if this segment were to make use of the Pension Wise service."

Mr Lowe added following the government's announcement in 2016 that there will be a single guidance body offering debt advice, money and pensions guidance, Just Retirement Partnership expects to see far more detail on how this will work in 2017.

He said: "This cohesive approach is to be welcomed as it is hard to argue that a person’s retirement finances are not impacted by the choices that they make in other areas of their personal finances and vice versa.

"Although we are unlikely to see the mass retirement market upheaval experienced in 2014 and 2015 repeated in 2017, there will undoubtedly be further changes and challenges as advisers, providers and consumers continue to adjust to the ever evolving retirement landscape."