In Brief

Pensioners are at risk of losing vital income in retirement if they delay buying an annuity, it has been claimed.

Those putting off their annuity purchase in the hope of giving their pension time to recover from market volatility could lose up to £5,000 of income, according to Key Retirement Solutions.

KRS reported a surge in the number of people delaying buying an annuity over the last month as share values have fallen.

But annuity rates have also fallen over that period, by 3 per cent. Someone retiring with an average £100,000 fund a month ago would have secured a retirement income of £6,831, compared with £6,624 now, equating to £5,000 over 25 years.