Pensions - Articles - Partnership welcomes proposals to sell annuities for cash

 This appears to be an attractive option for those who wish the peace of mind afforded by a guaranteed income for life but who also want the option to ‘sell’ all or part of the income from their annuity in return for a cash lump sum. This would extend pension freedoms to those who have already retired.

  

 The proposals appear to cover the sale of future annuity cash-flows to another provider without the annuity contract being cancelled. Accordingly it can benefit current annuitants without interfering with the existing contract.
  

 Commenting on the proposals Steve Groves, CEO of Partnership said:

 “I think the idea in principle is broadly very positive for consumers and Partnership. On one level the idea that someone could benefit from a guaranteed income for life, but know they could access cash for a rainy day, can only make annuities more attractive to prudent savers. 

  

 “Meanwhile Partnership as a specialist health and lifestyle insurer, with over 120,000,000 data points, would be well placed to act as a sophisticated potential buyer of annuity income streams if we believed it was appropriate for our business and we were able to offer the best rate for consumer.
 
 “However the possibility of the introduction of these reforms is distant, as any Consultation following the Budget will inevitably take place after the May 2015 General Election and a potentially different administration.

  

 “The devil is, as always in the detail, and this proposal would inevitably require the development of a mature market and appropriate regulations to safeguard consumers. We will monitor this closely and contribute to any future consultation. However, in principle, Partnership is broadly supportive.”