Nine out of ten advisers report clients using income drawdown are worried about their income potentially falling by as much as 55%, a poll has found.
Research from annuity specialist MGM Advantage said a ‘perfect retirement storm' had forced advisers to reassess the suitability income drawdown for many clients.
Alternative strategies include exiting drawdown using investment-linked annuities (61%) and topping up the drawdown pot from other savings (38%).
Phasing an exit from drawdown using annuities accounted for 24% of advisers, while only 19% said their clients were happy to accept the income fall in the hope that markets recover.
More than half (52%) of advisers said the top priority for clients was to preserve income.
Falling annuity rates are also concerning 49% of clients, while the background of inflation eroding spending power is a top priority for 38%. Only one in four advisers suggested their clients' top priority was to preserve capital.
Andrew Tully, pensions technical director, MGM Advantage said: "We are in the middle of a perfect retirement storm which shows no signs of abating. Annuity rates tumbling, the global economy in a perpetual state of turmoil, interest rates at historic lows, and inflation higher than the Bank of England target have left retirees wondering what next.
"Advisers are looking at ways of managing their clients concerns, including the use of investment-linked annuities."
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