A new form of annuity which gives consumers the ability to cash in after 12 months is set to hit the market in reaction to the sweeping Budget reforms.
Partnership has launched its Enhanced Choice Annuity aimed at the 50% of 65-year olds people with a health or lifestyle condition who may traditionally have bought an annuity but do not wish to fully commit to purchase prior to the introduction of the new pension regime.
It will give them access to their 25% tax free lump sum and a guaranteed income for life plus the ability to benefit if their health deteriorates, interest rates rise or they decide another option is more suitable.
The company said it gave the consumer "complete choice and certainty".

{desktop}{/desktop}{mobile}{/mobile}

The difference between this product and other providers' offerings, according to Partnership, is that a consumer can choose to keep it after the one year anniversary with a known guaranteed rate – rather than being forced to automatically exit as with fixed term annuities.
The purpose of this is to protect them from interest rate movements.
Andrew Megson, managing director of retirement at Partnership, said: "Partnership has been campaigning for more consumer choice around retirement income for years and the recent Budget introduced what is arguably the biggest shake up of the system for a generation.
"However, while these changes provide more options, many people who are facing retirement in the immediate future are unsure of what to do and wish to provide themselves with the opportunity to fully consider their options.
"This has provided us with an excellent opportunity to grow and innovate our product range to help people navigate this new landscape."
The new annuity will be available exclusively via intermediaries and will allow people to annuitise pension pots of £10,000 or more.
Partnership is an IFP corporate member.