Annuity rates have fallen by over half since 1990, one expert has claimed.
Ros Altman, pensions expert, stated that they could continue to get worse due largely to the effect of Solvency II - a series of regulatory requirements for insurance firms operating in the European Union - and defined contribution schemes (DC).
She noted that it still remained the situation that the more money put into a pension, the better the chances of a bigger retirement income.
But Ms Altman added that she thinks it is "utterly disgraceful" that consumers had not been protected or informed by the open market option.
She said that the rate of decline in annuity rates will be influenced by a number of factors, including inflation, interest rates, Solvency II and life expectancy.
Her comments come after the National Association of Pension Funds unveiled two new initiatives that it hopes will help provide a stronger culture within the industry.
