The Sipp contains a flexible investment element [flexi-access drawdown account], offering a choice of investment funds and a cash account, and a guaranteed element [an enhanced annuity]. It is aimed at the estimated 60%-plus of customers who qualify for an enhanced annuity due to ill-health or lifestyle choices. The ERA will combine the different products in one wrapper.

Wrap platform IFDL, which trades under the Ascentric banner, will manage the flexible aspects of the product and Vanguard will provide the investment funds that customers will be able to access through the product.

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Partnership will be working to educate advisers about the potential for these products via roadshows and face-to-face briefings ahead of being in a position to provide binding quotes in October. The Sipp will only be available through independent financial advisers. The ERA has the following features:

• Security – A guaranteed income to cover essentials;
• Flexibility – Flexibility to take ad-hoc or fluctuating withdrawals. In addition, customers can choose to invest in a range of eight Vanguard Funds as well as a cash account and an Isa;
• Low cost, easy to manage and complete transparency – Total product and fund charges of between 0.47% and 0.65% with no transaction fees. One application, one income payment and one P60 (which helps ensure the customer pays the right amount of income tax);
• Tax Efficient – Unused income can be rolled up into the product and withdrawn as part of the regular payment when customers so desire. Death benefits for the flexible investment element [including cash account] subject to current HMRC rules and guaranteed options [up to 20 years] available on annuity;
• Broad Client Appeal - Available to new customers between ages of 55 and 85 with funds of £10,000 to £1 million. Uncrystallised funds will be accepted;

Andrew Megson, managing director of retirement at Partnership, said: “The introduction of the Pension Freedoms presented a challenge to the financial services industry and we feel that the launch of this product ushers in a new ERA for retirees. Providing people with the reassurance of a guaranteed income while allowing them to benefit from investment growth as well as flexible drawdown means that people have the best of ‘most worlds’.

“Unlike some other products, the Enhanced Retirement Account can grow and change with the customers’ requirements. While, someone may well wish to invest for growth in their sixties, they may be more comfortable with a higher guaranteed income in their eighties – this product offers people this option – supported by acknowledged experts in their respective fields.