Equity release schemes may benefit those affected by falling annuities

Individuals not far from retirement may wish to consider equity release in the face of declining annuity rates.

According to annuity-rates.org, there was been a fall of 28 per cent in the last decade in spite of the recent improvements at the beginning of this year.

The website suggests that equity release may be an option to boost retirement income, a move that will allow older people to free some of the capital stored in their property.

It predicts that annuity rates could fall further in the future because of new EU regulations. These state that insurance providers will be forced to retain capital in order to regulate their balance sheets more effectively.

Other retirement income options include working for longer, although those who wish to give up work are more likely to favour equity release.

MGM Advantage warned last month that retirement income is expected to "fall dramatically" and stressed the need for new annuity products to combat the growing problem.

Ashall Glover Financial Services advising on equity release schemes