Clients are turning to multi-asset investment strategies to help them cope with their financial fears in retirement, according to a new provider survey of advisers.

The research showed that two-fifths (40%) of retiring clients’ pension assets are invested in multi-asset strategies – by far the most popular investment strategy.

Aegon’s latest adviser attitudes report showed multi-asset strategies were well ahead of second-placed equity growth (15%) and equity income and fixed income, which were both at 11% of retiring clients’ pension assets.

Almost a third (31%) of advisers surveyed said their clients were choosing to work longer and retire later, with running out of money in retirement the number one fear for three quarters (77%) of them.

Second among common concerns was the difficulty when planning how much income they may need in retirement, with almost two thirds (63%) of advisers saying their clients felt this way.

Annuities represented only 10% of retiring clients’ pension assets, despite favourable rates and greater stability, according to the study.

Aegon said the research shows how investment advice is adapting to meet the changing behaviours and plans of retiring clients.

Lorna Blyth, managing director, investment proposition at Aegon, said: “Given the economic challenges of the past few years, more people taking the decision to earn for longer and retire later shouldn’t come as a huge surprise.

"However, it’s important that both clients and advisers recognise that stopping work at a later date, but living longer on average, doesn’t necessarily mean fewer years of retirement to fund and plan for.”

• The research was based on the views of 200 financial advisers from across the UK. Fieldwork was conducted by Opinium between 8 to 15 January.