Aviva has announced the launch of its guaranteed fixed term income plan, a new addition to its retirement income portfolio, designed to offer clients greater control of how they manage their pension savings.
The new annuity proposition provides a guaranteed income over a fixed term – between 3 and 25 years - without requiring a lifetime commitment. It is aimed at individuals seeking a secure income stream, while retaining the freedom to reassess their retirement strategy at the end of the term.
The new offering complements Aviva’s existing annuity proposition range which includes a fixed term annuity, through to lifetime care annuities.
The guaranteed fixed term income plan is designed to meet the needs of today’s retirees, who increasingly value stability and flexibility through a low-commitment, predictable income, for a set period, helping with budgeting and shielding them against market volatility.
A recent report from Aviva reveals that most respondents (83%) feel that having a regular income in retirement has become more important as they get older, with women more likely to feel this way than men (87% v 80%). It also highlights the importance of maintaining income patterns that people have become accustomed to throughout their working lives, with 83% saying they were used to managing a regular household income and would worry if it suddenly dropped.
The guaranteed fixed term income plan is part of Aviva’s strategic transformation programme for its annuity business. The proposition is available via a new platform that features a fully digital quote and apply journey for advisers, simplifying the end-to-end process.
Claire Reed, director of individual annuities at Aviva, said: “At Aviva, we’re evolving what retirement income can look like, and 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.
“Aviva’s continued investment in annuity innovation and technology reflects our ongoing support for customers and advisers as they navigate modern retirement.”
