Fixed-term annuities give income for a set period – such as five or 10 years – and an agreed lump sum at the end

Financial firms are reporting growing demand for a product that helps bridge the gap between stopping work and getting your pension.

Sales of retirement annuities have risen sharply during the last couple of years, and now advisers are seeing a fresh surge of interest in what they say is one of the market’s “lesser-known” options.

Competition is hotting up, with National Savings & Investments lifting rates to the highest in years

National Savings and Investments (NS&I) has increased the returns on some of its accounts, with many now paying more than 5% for the first time in nearly three years.

Competition in the savings market has been growing, leading to some of the highest interest rates for years.