The number of advisers promoting annuities grew further last year, according to a new survey by Investment Trends.

About 41% of respondents would recommend annuities to clients, up from 38% in 2014 and 32% in 2013.

“To being seen as adding value to their pre-retiree and retiree clients, financial advisers are reducing their flows into safe-haven investments such as cash and term deposits, in favour of more sophisticated products,” Investment Trends Head of Research for Wealth Management Recep said.

“Annuities will continue to be the winners as advisers seek higher-yielding, diversified investments.”

Mr Peker says increased interest in annuities can be attributed to Challenger’s efforts to raise awareness about the products.

“Advisers are becoming proficient in recommending annuities, with more finding them easy to understand and use,” he said.

“Those who explain annuities to clients typically spend only 14 minutes doing so, versus 17 minutes taken to explain managed funds.

“Client awareness of the Challenger annuities brand has also contributed significantly to advisers’ ability to recommend annuities, helping to grow the market.”

The research shows 84% of advisers want help from product providers to service annuity clients, up from 82% in 2014.

“Advisers most commonly seek online tools and calculators, ahead of education and awareness initiatives and improved products,” Mr Peker said.

“Advisers want product providers to equip them with the necessary tools to engage their pre-retiree and retiree clients.”