About 80% of advisers are concerned about the low rate of lifetime annuities and are looking for alternatives, according to research out today.
The study from Primetime Retirement also found 79% of the 447 UK-based IFAs questioned do not believe that conventional annuity rates will rise over the next year.
They were more positive about annuity rates in the medium term however, with 58% predicting improved rates in the next five years.
The retirement specialist said that the research highlights the income gap facing many people in retirement and the need for increased flexibility and innovation in retirement income solutions.
Primetime Retirement chief executive Kim Lerche-Thomsen said: "We are currently seeing low annuity rates which are causing IFAs to search out alternative annuities but it is encouraging to see that over the next five years, rates should improve.
"Today we see flexibility in all other financial services sectors, so why not for retirement income products? Despite people living much longer, a person's health and family circumstances are unpredictable.
"[For example] fixed-term annuities allow those in retirement to determine which type of annuity suits them best in individual five to six year stages throughout the latter part of their life."
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