National adviser bucks trend with 17% annuity hike

Patrick Connolly, head of communications at Chase de Vere, said his firm too had seen more clients opt for drawdown.

He said ideally everybody should have secure income to cover their basic living costs in retirement.

"Once this guaranteed income is secure, people will have a safety net in place and can then consider higher risk options," he said.

These blended options – with part annuity and part drawdown – are also offered to LEBC’s customers.

According to Alan Chan, director and chartered financial planner at London-based IFS Wealth & Pensions, annuities remain a "vital part of financial planning".

He said: "We would always start from an expenditure analysis and we aim to split that into two parts: essential and lifestyle spending.

"The essential outgoings will first need to be matched with a suitable annuity as they must be paid no matter what.

"The lifestyle spending can then be matched with a variable, non-guaranteed income source such as a drawdown pension. This can provide peace of mind and the best of both worlds for the client."