How Aviva’s new guaranteed fixed term income plan reflects modern retirement needs

October 8, 2025

In the following analysis, Claire Reed, Director of Individual Annuities at Aviva, explores how the insurer’s new Guaranteed Fixed Term Income Plan is designed to meet the evolving needs of today’s retirees. Drawing on adviser feedback and customer insight, she explains why flexibility, control, and guaranteed income are no longer mutually exclusive and also how Aviva is helping advisers support more dynamic client retirement journeys.

Over the past two years, annuities have seen a remarkable resurgence. According to the FCA, annuity sales rose by nearly 39% between 2022/23 and 2023/24¹ – the largest increase of any retirement income product. In 2024 alone, annuity sales reached €7 billion, a 34% increase on the previous year². This growth has been fuelled by improved annuity rates, which have remained at their highest levels in over a decade.

But while demand is growing, our research revealed that traditional annuities often feel out of step with how people live their retirement today. Many consumers described the term “annuity” as old-fashioned, rigid, and poorly understood. They want income certainty, yes – but also flexibility, control, and the ability to adapt as life changes.

This desire for flexibility has only intensified since the COVID-19 pandemic. The uncertainty of recent years has made many people more cautious about locking into long-term financial commitments. According to research by the Pensions Policy Institute, atypical behaviour during the pandemic included a sharp drop in annuity purchases and a rise in people deferring decisions or opting for shorter-term solutions. Advisers are also seeing clients work longer or delay accessing their pensions due to cost-of-living pressures³.

Designed for real retirement journeys

Advisers told us the same. They see clients who value the security of a guaranteed income but hesitate to commit for life. They want options that bridge the gap between full flexibility and full commitment – especially for clients retiring before state pension age, or those planning to downsize or sell rental properties.

That’s where our new Guaranteed Fixed Term Income Product comes in. It’s designed to meet this middle ground: offering a guaranteed income for a defined period, with the option to cash in early or receive a maturity value at the end. It gives clients the confidence of a fixed return, while preserving choice for the future.

We’ve built this product with two key customer segments in mind. The first segment of customers are those who tend to have smaller pension pots, lower risk appetite, and limited access to advice. They value simplicity, security, and flexibility – and our new product offers just that. The second segment of customers, on the other hand, often have more savings and are more likely to phase into retirement. For them, our Guaranteed Fixed Term Income Plan provides a low-risk way to bridge to state pension age or supplement part-time income.

Importantly, we designed this product to be accessible with clear documentation, strong post-sale support, and safeguards for vulnerable customers. It’s a product that reflects the realities of modern retirement: diverse, dynamic, and deeply personal.

For us, this isn’t just about launching a new product. It’s about responding to what we heard – from the 77% of pre-retirees who found fixed term options appealing, to the advisers who asked for more tools to support phased retirement planning. It’s about giving people more control, more clarity, and more confidence – without compromising on the guarantees they value⁴.

Built with purpose

We acknowledge were not the first to market to offer a fixed term annuity and that’s by design. At Aviva, we don’t rush to launch. We listen, we learn, and we build with purpose. Our Guaranteed Fixed Term Income Plan is the result of deep customer insight, adviser feedback, and a commitment to doing the right thing – not just quickly, but meaningfully.

Our new Guaranteed Fixed Term Income Plan complements Aviva’s existing annuity and drawdown products, enabling flexible, phased retirement strategies-ideal for bridging to state pension age, supplementing part-time income, or offering a low-risk drawdown alternative.

The journey forward

This year has already seen meaningful progress in how we support advisers and customers. We’ve implemented Origo Application Tracking, giving advisers real-time visibility of application progress. We’ve made Immediate Life Annuities available to quote on selected portals, improving accessibility and speed. And we’ve enhanced our rate guarantee, offering greater certainty and flexibility in a volatile market.

But we’re not stopping there. Were committed to continuous investment in the annuity market – not just to keep pace with change, but to lead it. Our ambition is to:

Generate sustainable long-term value through proposition, pricing, and trading optimisation.
Deliver good retirement outcomes for customers who choose to stay with Aviva.
Be the go-to provider for anyone new considering an annuity, driven by our market presence and thought leadership.
Deliver on our customer promises.

To bring our ambition to life, were enhancing our annuity propositions with new features like death benefits and inflation protection, while evolving our adviser platform, Aviva Connect, to offer smarter tools and seamless integration. We’re also building core capabilities in pricing, digital, and data analytics to improve responsiveness and scalability. Operational efficiency is a key focus, with streamlined processes and clearer communications to improve adviser and customer outcomes. We’re strengthening strategic partnerships with advisers through co-creation and thought leadership, and we remain committed to sustainability, embedding Net Zero goals into our investments, products, and operations.

At Aviva, were not just offering annuities – we’re offering assurance. Assurance that your clients will be supported with integrity, innovation, and insight at every stage of their retirement journey. In a world of complexity, we’re here to make things simpler, stronger, and more certain – for you, and for them.

To find out more about Aviva’s Guaranteed Fixed Term Income Plan, click here.

About Claire Reed, Director of Individual Annuities, Aviva

Claire Reed is a qualified management accountant with a Master’s degree in Strategic Business Management. As the Director of Individual Annuities at Aviva, she has a well-rounded perspective on the evolving needs of retirees with a strong track record of delivering customer-focused innovation. Claire combines financial acumen with strategic insight to support advisers in helping clients achieve long-term security. Claire is known for her collaborative and empowering leadership style, fostering high-performing teams that drive strategic growth and deliver meaningful outcomes for advisers and their clients.

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