Standard Life, part of Phoenix Group, announced the launch of the Standard Life Pension Annuity, designed to meet the “increasing need for certainty and security among those approaching or at retirement.”

Analysts said the move is a sign that higher interest rates have rejuvenated the fixed income market.

The Standard Life Pension Annuity has been manufactured by Phoenix Group and will be distributed under the Standard Life brand.

“It can be tricky for people to plan for retirement and know how long their savings will need to last, given market volatility, economic uncertainty, and the fact that life expectancy can be difficult for people to predict,” said Standard Life.

“The flexibility offered by drawdown remains an attractive option for many, but with investment returns not guaranteed, there is a risk of running out of money without effective planning.

“An annuity offers pension savers a solution – providing a regular, guaranteed income that lasts as long as you do.

“Available on the open market to both new and existing Standard Life customers, the Standard Life Pension Annuity is aimed at customers aged between 55 and 75 who are looking for a guaranteed income for life from their pension savings.

“It is available through both advised and non-advised routes, including industry quote comparison portals and leading specialist annuity brokers.”

Claire Altman, Managing Director for Individual Retirement at Standard Life, said: “Annuities are increasingly better value, with current rates improving by 20% in the last twelve months, as of June 2023.

“In an uncertain economic climate, in which three quarters of people say they want income certainty in retirement, the guaranteed income offered by an annuity is likely to be an ideal solution for many.

“I think people are beginning to see this value, with the first quarter of this year proving to be the highest quarter for annuity sales since the pension freedoms.”