Annuity rates have fallen to an all-time low.
The steady fall in rates over the summer months follows re-pricing activity among providers.
The latest reductions mean the average male annuity rate has dropped by 45.5% over the last 15 years, while female rates have fallen by 41.8%.
The average rate for a male aged 65 purchasing a level without guarantee annuity, based on £10,000 purchase price, has decreased by 6.3% since last August.
The equivalent female annuity fell by 5.6% over the past year.
Richard Eagling, editor of Investment Life and Pensions Moneyfacts, which conducted the research, said: “With every passing month the outlook for those approaching retirement appears bleaker.
“There has been a spate of annuity re-prices over the summer months which has unfortunately left rates at record lows.
“In a few months time the first baby boomers will hit retirement. Often perceived as the lucky generation, they are likely to face a rude awakening when they come to secure their retirement income via an annuity.
"With gilt yields still low and life expectancy increasing we can expect annuity rates to fall further still. Tomorrow’s pensioners face a desperate battle to secure a comfortable retirement.”
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