Legal & General agrees annuity partnership with PensionBee

From 3^rd August, customers enquiring about an annuity with PensionBee will be introduced to Legal & General for further information, or to get a quotation. Legal & General will also help customers find the best rate available through its whole of market annuity comparison service, Annuity Ready.

This new partnership has partly been driven by forthcoming Investment Pathways regulations, which include a pathway toward a guaranteed income product, such as a lifetime annuity.

This is the fifth deal Legal & General has announced and follows similar partnerships with the likes of AEGON, Prudential and Sun Life Financial of Canada.

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The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

Legal & General's Pension Annuity

Pension Annuity is a lifetime annuity which pays the client a regular income, guaranteed for the rest of their life.

The client can tailor the income to meet their needs, so they'll know exactly what they'll be receiving and when. Options could include:

• The client may receive a higher income, also known as an enhanced income, if they have certain health or lifestyle conditions, such as smoking and being overweight.
• An option to have income which increases annually to protect against inflation.
• A range of death benefits to provide income for dependants in the event of the client's death.
• Clients can choose payment frequencies to be monthly, quarterly, half yearly or yearly; in advance or in arrears.

There are risks too. They include:

• The client could lose money - pension annuities don’t have a ‘cash-in’ value and the total income paid from the client’s annuity could be less than the amount they used to buy it. A guaranteed payment period and/or dependant's pension can be added to reduce this risk.
• Timing - the amount of pension income we’ll offer the client will be based on our annuity rates at the time. If they buy when rates are low, their income will reflect this.
• Inflation - price inflation can reduce the real value of the client’s income over time, which could mean that it doesn’t stretch as far in future years, an increasing income can reduce this risk.
• It's a once and for all decision. Once their annuity is in payment the client can't change any of their payment options, even if their circumstances change.
• Deteriorating health. The pension income we offer the client will be based on the information they provide when they apply. If their health subsequently deteriorates, we won’t be able to increase their income.
  
  

About PensionBee

PensionBee is the UK’s leading online pension provider, enabling customers to interact with their savings through its unique combination of smart technology and dedicated customer service.

Since it was founded in 2014 by Romi Savova, PensionBee has been a challenger in an industry ripe for disruption. It has grown rapidly by helping consumers to solve the challenges they face when it comes to locating, combining and managing their pension savings. It now counts over 85,000 active customers from 18-80 years of age with over £800 million in assets under administration.

Its range of plans are tailored to customers’ needs and are 100% FSCS protected. Plans are managed by some of the world’s largest money managers including: Legal & General, BlackRock, HSBC and State Street Global Advisors.

PensionBee uses its proprietary technology and Open APIs to allow customers to manage their pension, view their live balance, make contributions and withdrawals online and with the help of a smart calculator to plan their saving. It continuously engages with customers through its dedicated customer account managers and listens to feedback to develop new tools which help customers to easily plan for their retirement.

By focusing on ease of use, full transparency on fees, and jargon-free communication, PensionBee has become one of the UK’s most trusted pension providers with a 95% customer retention rate and a 4.7/5.0 Excellent Trustpilot score.