Having an income guarantee in retirement is one of the most important things to pensioners, according to Lincoln Financial Group.

Lincoln says that, with markets remaining unsteady, people are starting to worry about their investments and so are likely to dip in and out of equities to try to avoid downturns.

However an industry study carried out by Fidelity International shows a stake of £1,000 invested in the UK stock market in June 1992 would have been worth £4,612 at the end of June 2007 if left untouched, but if the best 40 days to remain invested in the market were missed then the amount would only be worth £1,304.

Will Hale, head of distribution at Lincoln Financial Group, says, ‘Timing the market correctly can be extremely difficult to get right, but products with income guarantees give people the confidence to stay fully invested in the markets and prevent them from missing out on best day performances.

‘Our research shows that 44 per cent of Independent Financial Advisers believe that having an income guarantee is one of the most important things to their clients in retirement. Variable annuity products that offer an income guarantee can provide a middle ground between annuities and income drawdown, with greater flexibility than a traditional annuity and less risk than a traditional drawdown.’