CAPITA Hartshead Actuarial and Consultancy Services is linking up with Partnership, the impaired life provider, to help individuals with low-value DC pension accounts access a wider range of annuities.
The arrangement is designed to allow people with very limited pension savings to benefit from the enhanced annuity rates available to ’impaired’ lives. As well as offering more choice, Partnership’s simplified enhanced annuity proposition claims to deliver a quick, low cost service and a far less intrusive information gathering process when compared to most impaired life annuities.
Trustees using Capita Hartshead’s annuity service will be able to choose between the current fully underwritten service and Partnership’s simplified approach which will provide quotes on standard rates as well as an impaired life basis.
Jacqueline Conroy, head of annuities and risk broking at Capita Hartshead Actuarial and Consultancy Services says: “Poor take-up of enhanced rates, particularly for those with low fund values, is something which needs attention from the industry and Partnership and Capita Hartshead are working together to address this head-on. Currently there is only one provider prepared to quote on funds of less than £5,000 and this is on standard rates. By offering Partnership’s ’simplified enhanced annuity solution’ we can give all our members the opportunity to access impaired life annuities.”
Andrew Megson, MD Retirement at Partnership, says: “Increasing numbers of people are retiring with DC benefits. Research has shown that people with small funds do not get the best deals and there is a general lack of awareness of the increased rates available for those with health problems. Capita Hartshead is a significant player in the annuities market and by linking up with them we can continue to spread the word about the types of annuity available and help people get the most from their pension savings.”