Nearly two out of five independent financial advisors in the UK will be advising clients to use guarantee-type products for their retirement planning in the next 12 months as interest in alternatives to conventional annuities increases, new research from MetLife Europe shows. The firm is an affiliate of US-based MetLife Inc, an insurance and financial services organisation which had $559 billion (around £283 billion) of total assets at 31 December 2007.

Around 48 per cent of advisors expect to sell more guaranteed pension products over the next five years as the retirement income market changes, the nationwide study suggests.

Half the advisors surveyed believe too many pension investors are using traditional conventional annuities rather than drawdown products, variable annuities or unit-linked guarantees.

Dominic Grinstead, strategic development and marketing director, said: “Unit-linked guarantees fulfill an important part in the product suite that IFAs can offer clients planning for retirement. Guarantee products provide an excellent solution by giving exposure to equities and offering the safety net that investors are increasingly looking for.”

MetLife’s products with guarantee features include a Self-Invested Personal Pension, a Trustee Investment Plan and an Investment Bond.

The MetLife Secure Retirement Option works by giving the holder a Secure Account Value when they first invest. Every three years the account is reviewed and if it has grown in value then the SAV is increased and locked in. If it has fallen then the SAV remains the same.