Investment, Life & Pensions Moneyfacts revealed the total reduction in rates was 41 per cent for males and 39 per cent for females.

Those women who were prepared to shop around for the best annuity rate found better deals than their male counterparts, the report found.

“Future pensioners, in ill health or with lifestyle considerations, have widening options for getting the best deal for their money,” said deputy editor Suzanne Greener.

However, Ms Greener made clear that the majority of pensioners, who would be categorised as standard risks, face a less certain future in terms of annuity rates.

“Their only realistic option is to work towards accruing a more substantial pension pot from which to derive sufficient income in retirement,” she added. “For these individuals the clock really is ticking. “

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