Aviva launch fixed term annuity

19 August 2025

Aviva announced yesterday (18 August) that it has launched a new fixed term annuity product. This joins its existing lifetime annuity product in offering customers guaranteed regular income from their pension savings.

The company says that its new Guaranteed Fixed Term Income Plan is “designed to offer clients greater control of how they manage their pension savings”. Customers can choose a term of between 3 and 25 years for their annuity. 

A main benefit of fixed term annuities (which are also available from a number of other providers) is that they give customers the opportunity to reassess their income strategy at the end of the term. It’s an alternative to a lifetime annuity, which as the same suggests is designed to run until the customer passes away.

Claire Reed, Aviva’s Director of Individual Annuities, says: “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.” 

Retirement Line looks forward to offering our clients fixed term annuities from Aviva, alongside existing similar products from providers including LV=, Canada Life and Legal & General. With our annuity quotes and information service, we enable you to compare quotes from all the UK’s leading annuity providers and shop around for the best income and most suitable product.

How does a fixed term annuity work?

Fixed term annuities have the flexibility to meet a range of retirement income needs:

• Income only. You can use all the money you allocate from your pension savings to generate a regular guaranteed income over the fixed term. 

• Income plus lump sum at maturity. You can choose to take less income and use some of your savings to lock-in a guaranteed maturity value at the end of the term. 

• Lump sum only. Take no regular income and instead use all the money to generate a higher guaranteed maturity value.

The lump sum you receive at maturity can be taken as cash (subject to income tax) or used to set up another retirement income plan, such as another annuity or income drawdown.

Please see our guide to fixed term annuities for more information. This includes examples of how this type of product can meet a range of circumstances and retirement goals. Or to discuss your annuity options with an Annuity Specialist, please call us on 0800 652 1316 or request a call back.

Source:

Aviva product launch: Aviva launches new guaranteed fixed term annuity to meet evolving retirement needs. Aviva. Accessed 19/08/2025.