Falling property prices are leading pensioners to reconsider their retirement, it is claimed.

Michelle Mitchell, charity director at Help the Aged and Age Concern, believes this could limit the options for many of the country’s elderly people, namely those who were planning on selling their home to help fund care.

"People might find they have less choice about the type of care they receive and might need to rely on local authority support sooner," she continues.

The expert claims that the fall in property prices should act as a warning to those relying solely on the capital in their home to fund their later years, which could lead people to seek debt management guidance.

Having funds in a variety of investments is crucial to ensuring financial stability, Ms Mitchell adds, which will reduce the risk of losing money.

Propertyfinder.com reported in April 2009 that the total value of pensioner property had fallen by £220 billion to £800 billion in the last year alone.

Pensioners own one third of the country’s property by value, but make up less than one sixth of the population, it added.