Aviva has launched a 'flex first, fix later' guided retirement income solution for the UK pensions market, which combines pension drawdown strategies with a later-life annuity.

The new retirement strategy aims to provide workplace pension customers with a sustainable income for life, and is designed to support pension savers who don’t pay for financial advice with complex retirement decisions by providing a guided framework that supports their changing needs.

As of today (23 July), the solution will be made available to workplace pension customers who are members of the Aviva Master Trust, providing all members with access to the Aviva Guided Retirement modelling tool and ongoing support throughout retirement.

Aviva said that it also plans to offer the new proposition to more of its workplace pension customers in the future.

Previous research from Aviva and Age UK found that there is a need for more support at retirement, as nearly two-thirds (65 per cent) of mid-retirees (aged 65-75) said that they think there is not enough support for people managing their financial needs as they age.

The report also recommended that 'flex first, fix later' retirement income solutions should become the norm, suggesting that these have the potential to deliver better outcomes for people approaching the later part of their lives.

The launch comes as the Pension Schemes Bill, which is set to bring a likely requirement for pension schemes to provide clear and accessible default options for converting savings into a sustainable retirement income, continues to work through parliament.

“It’s great to see the Pension Schemes Bill focusing on the full retirement journey," Aviva commercial director for workplace pensions, Simon Ellis, said.

"At Aviva, we want to help savers get ready for better retirements by ensuring their pension savings last a lifetime – and the Aviva Guided Retirement solution is built around that principle.

"This means we’ll be able to offer a solution that not only meets regulatory requirements but also reflects what members have told us they want: a retirement journey that offers both flexibility and security.”

Adding to this, Aviva Master Trust chair, Dr. Chris Noon, said: “The launch of Aviva Guided Retirement marks a significant step forward in our ongoing commitment to supporting Aviva Master Trust members with innovative and practical solutions that adapt to their evolving needs.

"By blending flexibility with long-term security, this solution empowers members to approach retirement with greater confidence.

“It also endorses the Aviva Master Trust’s leadership in defined contribution provision across the UK - setting a new benchmark for how pension schemes can deliver lasting value and guidance throughout the retirement journey.”

This article was first published on our sister website, Pensions Age.

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