Older people have been warned that by delaying the purchase of an annuity they could be costing themselves money.

Head of retirement income solutions at Just Retirement Nigel Barlow comments: "In uncertain economic conditions, consumers may feel it wise to defer buying their annuity - especially if their pension funds have fallen in value over the past few months."

Mr Barlow notes that older people may think that by leaving their funds invested they may recover and allow the consumer to take advantage of a higher annuity at a later stage in life.

However, he states that this may be the correct decision for some people, but notes that it is also a risk, explaining that it depends on how certain people are that the markets will improve during this period.

Meanwhile, insurer NFU Mutual recently urged women to check their pension arrangements as their later years could be uncertain due to their increased life expectancy.