Financial advisers are expecting a surge in business from retirees as economic circumstances mean financial plans are requiring changes, according to MetLife.

The study, which questioned over 100 advisory firms, found 65 per cent of retirement specialists expect to see a rise in client asking about annuities.

Some 81 per cent of advisers say they expect the annuity market to grow over the next two years as more baby boomers reach retirement age.

Dominic Grinstead, managing director of MetLife UK, said the rise in inquiries showed more retirement strategies were in need of review due to the economic circumstances.

“The increasing level of demand for advice from people who have already made retirement income decisions is due to the fact that what once appeared to be entirely sensible strategies could now look inappropriate given the ongoing low long-term interest rates and stock market volatility.

“The option to review decisions is valuable. Fixed-term annuities can play a role in this as they enable clients to plan for their current circumstances but still have the flexibility to change their retirement income decisions as circumstances change.”

However, advisers admitted they were concerned about consumer complaints in the face of ongoing volatility, 38 per cent were concerned about complaints and nine per cent were concerned about regulatory action over advice given over the past two years.

Changes in the latest Budget will significantly affect retirees with changes such as the introduction of a fixed-rate state pension to replace age-related allowances and the personal tax allowance for pensioners being frozen.

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