New research from specialist independent financial advisers, Key Retirement Solutions shows that over the last ten years average council tax bills in England have risen 91.58% (see below).

This is over three times the increase in average pensioner income, which has only risen by 29%, from £11,700 to £15,132, and highlights the growing affordability problems over 65s are experiencing.

Pensioners in the East of England (108.80%) and South East (106.52%) were hit by the highest increases while those in the North West (68.30%) and Yorkshire and Humberside (79.41%) saw the lowest rises.

	Band D Annual council tax payments 1995/96 (£)	Band D Annual council tax payments 2004/05 (£)	Percentage increase over ten years
`North East	679	1,229	81.06%
North West	705	1,187	68.30%
Yorkshire and Humberside	631	1,132	79.41%
East Midlands	632	1,198	89.58%
West Midlands	613	1,151	87.77%
East of England	568	1,186	108.80%
London	576	1,119	94.26%
South East	566	1,169	106.52%
South West	596	1,186	99.05%
Total England	609	1,167	91.58%

Somewhat surprisingly when house prices are taken into account, over 65s in London had the lowest levels of council tax in England in 2004/05 (£1119). However, this is likely to change if the planned rebanding of properties for council tax purposes takes place.

Dean Mirfin, Business Development Director, Key Retirement Solutions said: "We are all concerned about the rising cost of council tax but pensioners who tend to have a fixed income are particularly vulnerable. A pensioner who lives in the average band D property in England will see council tax eat up almost a tenth of their gross annual income making their life much more financially difficult."

"High levels of council tax and the prospect of significant increases if the rebanding process occurs are a great cause of concern for today’s generation of retirees. Not only are some still paying off mortgages and other debts but they also expect more out of their retirement than previous generations."

"However, with the high levels of equity held in property by the over 65s, there is tremendous scope for today’s retirees to use equity release to boost their disposable income. Equity release is however not suitable for all retirees and people need to discuss all their options and alternatives with an specialist independent financial adviser before choosing this route."

For a free and independent guide to equity release, or for more information call Key Retirement Solutions free on 0800 064 7075.