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Helen Morrissey, Head of Retirement Analysis at Hargreaves Lansdown, said today’s interest rate cut could herald a softening in annuity incomes.

But she cautioned that the market has remained “remarkably robust” in recent years and currently hovers close to all-time highs.

Data from Hargreaves Lansdown shows a 65-year-old with a £100,000 pension can get up to £7,793 per year from a single life level annuity with a five-year guarantee.

Ms Morrissey said: “Even if we do see incomes start to drift down, any movement should be fairly gradual, so interest should remain high. However, the prospect of further cuts coming down the line could persuade many to make a decision sooner rather than later.

“It’s a decision that shouldn’t be rushed. Once bought, an annuity cannot be unwound, so don’t leave room for regret.”