Two-thirds of advisers think the annuity system is "failing consumers" which is leading many to consider drawdown as an alternative route for clients, according to Skandia's latest adviser poll.
Its latest Adviser Insight Survey, which polled about 700 financial advisers, found 69% think the annuity system is broken and 89% agree drawdown is becoming more important.
Skandia said the drawdown had become more attractive to advisers since the introduction of flexible drawdown in 2011. Some 81% said this had made the option more attractive.
The provider said alternatives to annuities were necessary as increasing life expectancy and low gilt yields mean annuity rates remain at low levels
Income drawdown enables people to take an income from their pension savings while remaining invested in the market. It added financial advice was "essential to ensure the level of income taken and the investments selected for the portfolio are sustainable over the long term".
Skandia pensions spokesman Adrian Walker said: "How today's workforce is transitioning into retirement is changing. People are living longer and therefore ensuring the method selected for securing a retirement income is sustainable and takes account of inflation is absolutely crucial.
"It is not all about annuities anymore. Income drawdown can provide a more flexible option for the new retirement marketplace but advice is important to ensure it is sustainable and fully understood by the investor."
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