The latest Embark Investor Confidence Barometer found the blended approach, which combines flexible income drawdown with the ability to annuitize part of the pension fund to provide a guaranteed income stream, is now also the favoured option among all investors surveyed.
But the research, which surveyed 1,500 people between March 16 and 23, also found there were still high levels of uncertainty with 33 per cent of non-advised consumers unsure about the best approach.
By comparison just 17 per cent of advised consumers surveyed said they were uncertain.
The rise in annuity rates, coupled with the ongoing cost of living crisis, has also seen more clients to look for guaranteed income in their retirement propositions.
Jamie Drewett, intermediary distribution director at Embark Group, said: “Attractive annuity rates and innovations in product design enabling a blended approach to retirement income have put a renewed emphasis on adviser-client conversations.
“The blended approach allows advisers to offer appropriate clients a best of both worlds mix of security and flexibility.
“Guaranteed income supplies peace of mind to investors who need to cover higher living expenditures, while income generation potential is protected by holding the rest of the pension in flexible drawdown.”
But worryingly, more than a third (34 per cent) of advised consumers said they had reduced, or will have to reduce, their investments (Isa/GIA) due to the ongoing cost of living crisis and higher energy costs.
Just under one in five (19 per cent) agreed they have reduced/will have to reduce their pension contributions.
Embark found that there were two gaps in retirement readiness among those it surveyed.
First was the greater confidence of advised consumers (64 per cent) over non-advised consumers (58 per cent), in their ability to stop working at the age they wish to.
The second gap was between advisers and investors.
Less than a quarter of financial advisers (23 per cent) said they were confident the majority of their clients would have enough money to meet their retirement plans.
Nearly half said only a minority of their clients would have enough money to meet retirement plans.
But 69 per cent of advised consumers and 61 per cent of non-advised consumers feel confident they will meet their retirement goals.
Embark said this suggested some complacency on the part of investors, meaning advisers may need to do more to educate clients about the reality of their retirement prospects.