However, Mr Mowbray believe annuities still have a place in the market for those with “medium” pots of between £40,000 to £250,000.
He said: “Annuities will still be an important part of retirement planning for a significant proportion of people.
“For those that have a £30/40,000 to £250,000 pot...they will still rely on this income to generate a retirement income.
“Lots of defined benefit and state pensions will still be used to prop up the retirement income and, for those, some kind of secured protection like an annuity will be fundamentally an important part of retirement planning.
“It has changed now for people with small pots and large pots but not for those with medium pots. There is now a real opportunity to innovate products.”