The survey of 517 advisers shows that only 10 per cent of advisers would look to buy an annuity with all their pension savings while 38 per cent would use a combination of income withdrawal and an annuity.
Sixty-one per cent of advisers expect drawdown business to increase over the next year. Thirty per cent believe income withdrawal is suitable for more than half their clients while a further 50 per cent believe it is suitable for at least a quarter of clients.
Head of pension and bond marketing Nick Bladen says: “The market has responded to concerns over the inflexible nature of annuities by looking to other retirement solutions.”
Chessman & Partners IFA Diane Needham says: “We are getting more enquiries about drawdown but we are not necessarily recommending it to more clients.
“I generally would not recommend it unless they have a fund of over £150,000 and an alternative income source.”