Annuity rates have improved recently after falling into the doldrums for many years.

Three quarters (73%) of advisers surveyed by platform provider Embark say they would now recommend a blended approach to retirement income for the majority of their clients.

A blended approach, combining flexible income drawdown with the ability to annuitise part of the pension fund, was also the favoured option among the investors surveyed.

The majority (88%) of advisers surveyed said that the rise in annuity rates could simplify retirement choices.

A third (33%) of non-advised investors were unsure about the best approach to take, compared to 17% of those taking regulated financial advice.

Rises in the cost of living were also pushing investors to seek the greater certainty provided by annuities.

There was a large confidence gap between advisers and investors.

Less than a quarter (23%) of advisers surveyed said they were confident that the majority of their clients would have enough money to meet their retirement plans, whereas 69% of advised consumers and 61% of non-advised consumers were confident.

Just over a third (34%) of advised investors agreed that they have reduced/will have to reduce their investments (ISA/GIA) due to the cost of living crisis and higher energy bills. Just under one in five (19%) agreed they have reduced/will have to reduce their pension contributions.

The Embark Investor Confidence Barometer is a twice-yearly survey of over 1,500 people conducted by Censuswide for Embark Group (Embark). The survey covered 51 advised consumers, 504 non-advised consumers and 503 financial advisers between 16 March and 23 March.

• To access the Embark Investor Confidence Barometer report, please go to: www.embarkgroup.co.uk/icb