Guaranteed Drawdown market to be worth £48bn by 2023

However MetLife has highlighted that recent adviser research reveals a concern about providers being able to meet demand after April - just one in 10 advisers questioned believe providers are prepared for the launch of pension freedoms.

Advisers believe the major threat to the success of flexibility is the complexity of providers’ back books - around 68% say they are concerned about the ability of providers to adapt existing products to the new regime to meet the anticipated demand.

The data follows MetLife's announcement that it will be ready for the launch of pension freedoms from April, underlining its confidence that Guaranteed Drawdown solutions are ideally suited to the retirement revolution.

Existing and new customers of its Retirement Portfolio will have access to full flexibility from April. MetLife believes the need for certainty on income will be even more important when the new rules come into effect, but also understands that customers like to have flexibility should their circumstances change and has worked hard to ensure that new and existing clients and their advisers can take full benefit when flexibility is launched.

Simon Massey, Wealth Management Director, MetLife UK, said:

“As the market-leader in Guaranteed Drawdown we have supported the pension reforms since they were first announced and have worked hard to ensure we are fully ready for the launch.

“The reforms are clearly positive for our business as savers who would have taken an annuity will look at alternatives. Annuity sales are forecast to fall by up to 65% this year but customers will still have a need for certainty and an income for life and not all will want to take risks by going into drawdown.

“Advice will be vital if the reforms are to fully deliver on their promise and providers have a responsibility to ensure they do not rush out solutions or promise things they cannot deliver.”