Thousands of Equitable Life members are facing a difficult choice, to take a pay cut in their existing pension in the hope that later on, the troubled insurer will be able to pay them more.

Those who have exercised their annuities have received a letter asking them to make the decision.

When confronted by the BBC Radio 4's Money Box, an Equitable Life spokesman admitted it is "not a particularly attractive option."

Money Box listeners are expressing concern at the situation and the way in which the letter is written.

"It is very difficult to do any meaningful calculations about taking a reduced pension now unless one knows the life expectancy tables Equitable are using" said one listener.

Another added: "The letter talks about a cross over point in 12 years time for a 65 year old, do they seriously think that Equitable will still be in existence in 5 years time let alone 12?"

"Whatever you do, the money has already been lost." Tom McPhail, Hargreaves Lansdowne

One recipient of the letter raised the issue that the letter does not imply what may happen if they do not take a pension cut.

"Your letter implies, but does not state, that annuitants have the option of doing nothing" he says.

"If that is correct will you please supply your best estimate of the projected annual values using the illustrations contained in your letter for the next, let us say 10 years."

Money Box spoke to Tom McPhail, Pensions Research Manager at independent financial advisers Hargreaves Lansdowne. He agreed it is not an attractive choice:

"One way or another the income level is likely to fall...The Equitable Life with-profits fund is not going it grow well.

Whatever you do the money has already been lost. It is simply a questions of managing the situation in the most efficient way possible"