The number of customers who take an annuity from their existing pension provider is forecast to drop over the next couple of years, say 35 per cent of advisers in a Sun Life Financial of Canada IFA barometer.

The survey showed that 50 per cent of those surveyed believe that as more retirees stagger their retirement with a phased approach, flexible retirement solutions will grow in popularity.

The abolition of the current default retirement age is predicted to be abolished by 55 per cent, and an increasing uptake of the Open Market Option is forecast by 50 per cent of advisers.

“This research highlights the changes which are expected to affect the retirement market within the next couple of years,” commented Mark Stopard, head of marketing at Sun Life Financial of Canada. “The profile and expectations of the at-retirement age group has changed drastically so it makes sense that the industry and products to help them should adapt too.

“Customers are clearly phasing into retirement and advisers are recognising this change. This cannot be ignored, providers need to review their offerings and assess whether or not they are suitable for the changing profile of the flexible retiree.”

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