Falling annuity rates mean new retirees in Britain are receiving the lowest pension payouts ever recorded, it has been claimed.
The news could inspire a number of homeowners to take out an equity release plan, which could provide them with a tax-free cash lump sum.
Writing for specialist finance website Thisismoney.co.uk, Dan Hyde said rates as low as six per cent for a couple in their 60s mean pensioners are getting "scant returns on their hard-earned nest eggs".
"Retirees taking their pensions today are being forced to accept a smaller income than someone buying an annuity with the same pot just a few months ago," he explained.
The expert also said the situation is unlikely to improve any time soon.
"Back at the beginning of April, a man aged 65 years with a wife aged 60 years buying a joint annuity with a £100,000 pension pot would have received £6,080 a year. Today, he would get £5,860. It means rates have fallen by 3.6 per cent in two months," he added.
Homeowners who are concerned about the level of pension they will receive can boost their retirement funds by utilising some of the cash tied up in their home with an equity release scheme through specialist adviser Key Retirement Solutions.
Posted by Alison Stephenson 
