Aviva has launched a new guaranteed fixed-term annuity designed to offer clients greater control of how they manage their pension savings, after its research revealed a growing preference for regular income in retirement.

The plan is intended to offer a guaranteed income for a term of between three and 25 years, without requiring a lifetime commitment, and is aimed at individuals who want financial stability while retaining the flexibility to review their retirement strategy at the end of the period.

The move follows Aviva’s launch of its 'Flex First, Fix Later' guided retirement income solution just last month, as the provider continues to expand its range of retirement income products.

Aviva said the proposition responded to the needs of today’s retirees, many of whom value predictable income and budgeting support, alongside protection from market volatility, without locking into a lifelong contract.

Findings from a joint report by Aviva and Age UK earlier this year reinforced this trend, highlighting that 83 per cent of respondents felt that having a regular income in retirement had become more important as they got older, with women more likely to agree than men (87 per cent compared to 80 per cent).

It also revealed that most people were accustomed to managing a regular household income throughout their working lives, with 83 per cent saying they would worry if that income suddenly dropped.

Commenting on the launch, Aviva director of individual annuities, Claire Reed, said: “At Aviva, we’re evolving what retirement income can look like.

"Our new guaranteed fixed-term income plan gives people the confidence of knowing exactly what’s coming in and when - something many are used to during their working lives - while offering the flexibility to decide what’s next.”

The new plan will be available via a new platform offering a fully digital quote-and-apply journey for advisers, which Aviva said will simplify the end-to-end process.

Reed added: “Aviva’s continued investment in annuity innovation and technology reflects our ongoing support for customers and advisers as they navigate modern retirement.”

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