IFAs say client interest in flexible retirement products is growing faster than for conventional annuities.
MetLife research shows that 87 per cent of IFAs have seen rising demand for third-way products, with 70 per cent reporting that the increase in demand has been strong.
But IFAs reveal worrying levels of understanding among clients in relation to their predicted retirement income.
Around 70 per cent say client understanding of their probable retirement income is limited at the first meeting. Just 2 per cent of clients understand the issue very well while 6 per cent understand it quite well.
MetLife Europe head of communications Rosy Atal says: “A-Day has changed the landscape for retirement income planning and it appears this is translating to greater demand for flexibility. IFAs are seeing increased demand for innovative products.”