Almost 60 per cent of financial planners say they intend to recommend the use of annuity products in the year ahead, a report reveals.
Data from the Investment Trends December 2014 Retirement Planners Report, found the proportion of planners that recommended annuities to clients had continued to increase over the last three years.
Investment Trends senior analyst, Recep Peker, said the report found that 38 per cent of planners had suggested annuities to their clients in 2014, up from 32 per cent in 2013, and 27 per cent in 2012.
"Planners continue to see a greater role for annuities as part of their retirement advice," Peker said.
"In addition to already increasing usage, the intention to use annuities has also increased with 59 per cent of planners intending to recommend annuity products in the coming year, up from 45 per cent saying so in the previous study.
"In recommending annuities, planners are responding to client concerns such as longevity risk. Healthy client interest will continue to buoy planner appetite for annuities in the current low interest environment."
Peker said the trend towards lifetime annuities was likely to continue to grow, with the report finding 39 per cent of planners intended to use them in 2015, up from the 19 per cent who used them in 2014.
While 31 per cent of planners said they were likely to recommend long-term annuities in the year ahead (up from 20 per cent who used them in 2014), and 21 per cent for short-term annuities.