Scots aiming to downsize their property to boost their pension may be disappointed by the rewards on offer, a survey has claimed.

MGM Advantage has looked at current house prices and calculated the amount of equity released by downsizing from a detached property to a bungalow, around the UK. By downsizing at average Scottish prices, retirees would potentially release less than £50,000 of capital from such a house move, after moving costs including stamp duty.

MGM calculates that this would produce a monthly income of £282 from an annuity (or £335 for those paying higher rate tax), or £113 a month from a five-year bond and £72 a month from a deposit account. The UK average capital release would be under £85,000, inflated by figures of £154,000 for the south-east and £238,000 for Greater London.

Andrew Tully at MGM Advantage commented: "People who are able to save should consider other forms of saving, whether that be in pensions or ISAs, rather than banking on your own home to fund your retirement."

On the alternatives Mr Tully said: "There are benefits from choosing an annuity, with the uplift from tax-relief and a guaranteed income. But that needs to be balanced with many people's wish to retain control of their capital. However, you could run the risk of inflation eroding the returns on that capital over time or risk outliving your retirement fund. Doing your homework and understanding the risks, as well as seeking professional advice, is key to ensuring your retirement remains on track."

Virgin Money this week became the latest high street name to launch an annuity service, to encourage people to seek the best annuity on retirement.

Virgin follows Nationwide, Lloyds, Hargreaves Lansdown and Tesco in offering online comparisons and quotes intended to match an applicant's health profile. Financial advisers however warn that the charges - Hargreaves levies a 3.5% fee - might be better spent in a more detailed consultation.

Glasgow IFA Alan Wardrop said: "People are making decisions that are going to affect the rest of their lives and are not reversible."

A major survey by Aegon UK last week found 62% of Scots have a company pension in place, far higher than the UK average of 51%, but only half of Scots knew how much their pension was worth and one third could not say if it met their retirement goals. Fewer than 30% ever reviewed their pension and 46% did not know how much they would need for a comfortable retirement.

Duncan Jarrett at Aegon said: "Perhaps the most worrying finding of all is that these poor planning trends are evident in those closest to retirement, in the 55-plus age bracket."

Meanwhile, Equitable Life pensioners who finally began receiving an annual pay-out from the government's payment scheme last year can be reassured their payments will continue. Many of the 25,000 annuitants mostly in their eighties were unnecessarily alarmed last week by an MPs' report that warned the scheme would be "closed down" next March.

The MPs warned 200,000 ­eligible policyholders had yet to be traced and paid out before the scheme is wound down next year.

Philip Strang, of Newton Mearns, 83, who found it impossible to contact the scheme to make an inquiry, said after being reassured by The Herald: "Now I can sleep at night."

The Treasury said it would "take on board" the communications issue.