Brexit and the growing final salary transfer market will be the key drivers in increased demand for guaranteed drawdown options in the next two years, MetLife has claimed.

According to research by MetLife, 65 per cent of advisers said that they believe the guaranteed drawdown market will see a considerable boost as pension savers look for solutions which can offer investment certainty during the Brexit process.

The research, which was conducted as part of MetLife’s Quarterly Market Review, also found that 53 per cent of advisers now feel obliged to offer guaranteed drawdown solutions to clients who are seeking investment security. Seventy per cent of advisers believe that guaranteed drawdown products offer a lower-risk alternative than conventional drawdown or annuity products.

Furthermore, 50 per cent of advisers believe the guaranteed drawdown market will also increase over the next two years with the introduction of new retirement solutions from providers enhancing growth.

MetLife noted over half, 52 per cent, of advisers predict that more guaranteed retirement income solutions will encourage consumers to save more for their retirement.

MetLife UK Intermediary Development Manager Richard Evans said: “Retirement conversations need to change to include a wider range of options and the need for guaranteed drawdown is increasingly playing a central part in this discussion.

“Advisers clearly see guaranteed drawdown as offering security against a range of perceived threats, including Brexit, and as a method of hedging against taking too much risk for those transferring out of DB schemes.”

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