Retirement Advantage’s retirement accounts product has received 13,000 quotes worth £530m in just six months.
Andrew Tully, pensions technical director at Retirement Advantage, said the level of interest in the product showed hybrid solutions were fast becoming mainstream.
The product was launched last year and combines a guaranteed annuity, pension drawdown facilities and a cash account, all held within a single tax-advantaged wrapper.
The minimum initial transfer value is £20,000 after tax-free cash and adviser fee.
Mr Tully said: “‘The choice of choosing either an annuity or income drawdown is no longer relevant.
“These new hybrid solutions neatly bridge the gap between the two product types, and advisers have quickly caught on to the major benefits for all types of client.”
Keith Thomson, director of investment services at Dundee-based financial advisers Blackadders, said it was vital advisers make sure their clients do not run out of cash in retirement.
He said: “The issue it is all very good talking about drawdown but if someone if someone is only relying on that there is a serious risk they will run out of money.
“Unless there is very careful capital management there is a serious risk of the pension being depleted, which could lead to complaints.
“Having some form of guaranteed income for the essential living costs is great. Drawdown can then be used to adapt with changes in lifestyle and work with the markets.”