In a poll of more than 1,500 people by Hargreaves Lansdown, a staggering 95 per cent said that a secure income is still quite important or very important.

However, more than half of pension investors said they had delayed buying an annuity following the far-reaching reforms announced in this year’s Budget. 

Almost 80 per cent of respondents said they would wait until further details are announced about the new retirement landscape before making a decision.

Tom McPhail, head of pensions research at Hargreaves, said: “Retiring investors want clarity and certainty, both in terms of the rules governing their retirement income and in terms of their income payments themselves. This suggests reports of the annuity’s demise may have been greatly exaggerated.”

According to McPhail more and more investors are expected to opt for a combination of an annuity and a drawdown plan to provide them with a balance of security and flexibility.

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He continued: “It is important to remember that for all of the poor publicity around annuities in recent years, for the right people at the right time – and provided they shop around for a competitive rate – annuities can still be a very good solution.”