Financial advisers are recommending more use of annuities, with the rate rising 13 per cent in the past year.
Investment Trends research showed the crucial determinants for a recommendation are the provider's financial strength (72 per cent) and reputation (64 per cent).
Investment Trends senior analyst Recep Peker said 67 per cent of financial advisers had used annuities in the past year, and now "there is a growing appetite for [them] with the number of advisers recommending them growing from 36 per cent to 49 per cent in the past 12 months".
Of the advisers polled, 65 per cent said "they see guaranteed income as suitable for retirees", Peker said.
The survey, Adviser Product Needs Report, polled 966 independent and aligned advisers late last year.
In the past 12 months, four types of annuities were recommended: long-term, short-term, lifetime-fixed and variable.
The usage was as follows: 21 per cent of planners used long-term annuities, 16 per cent used short-term, 9 per cent lifetime-fixed and 8 per cent variable annuities.
"For guaranteed-income products, the most important factor influencing recommendation was the financial strength of the provider. That was 72 per cent," he said.
"The next most important factor was reputation at 64 per cent, followed by the client's ability to access funds, 55 per cent.
"For 49 per cent of advisers, the cost of the annuities was important."
Longevity risk was mitigated by 63 per cent of advisers who used a mix of products or one specific product.
The appetite for annuities had been "growing in the past few years", Peker said.
"This is not surprising, given there is more focus on retirees and also that some advisers are now increasing the number of retirees they advise."
