Since April savers have gradually reverted back to the safe haven of annuities, according to eValue’s quarterly Pensions Freedom index.
The data sample of more than 17,000 people showed the turbulent markets of late August and September had driven the attractiveness of annuity to its highest point since the arrival of pension freedoms.
In October 2015, following the turbulence, preference for guaranteed income was up to 47 per cent compared to just 33 per cent when pensions freedoms were introduced.
Meanwhile preference for flexible income was down from 54 per cent in April 2015 to 42 per cent.
Bruce Moss, strategy director at eValue, said: “Insight like this helps advisers and providers to anticipate when clients or potential clients will be engaged and looking for help and advice.
“The industry should use this intelligence to tailor its proposition to investors worried when markets are volatile and should capitalise on consumer engagement each time there is a government announcement and pensions hits the headlines.”
He predicted if the current market uncertainty persists there may be another peak in the popularity of annuities on the anniversary of pension freedoms in April.
The data comes from analysis of the 17,000 consumers who have used eValue’s online forecasting tools.
Earlier this week Retirement Advantage estimated the current volatility in world markets could have wiped 8 per cent off the value of a typical drawdown fund since April 2015.
A report published at the end of last month by the Pension and Lifetime Savings Association found the next wave of retirees will be more inclined to buy annuities because they are more defined contribution pension-reliant and will have less pension wealth and will be less likely to want to take risks.
