Standard Life has introduced a new guaranteed fixed-income product for those approaching or in retirement.

The ‘Standard Life Guaranteed Fixed-term Income’ aims to provide greater certainty for people approaching or in retirement, but with the added flexibility to adapt their plans once the fixed term ends.

The product is designed for those who are nearing retirement and are looking to temporarily top up their income from work, which will support the 46 per cent of people who expect to transition gradually to retirement.

Similarly, it aims to offer a reliable source of income for those who fully retire before state pension age to provide financial support until the state pension begins.

It can also be used by those fully retiring who want to avoid making a permanent decision about their retirement savings as it offers flexibility without exposure to market volatility and includes the option to increase income annually.

The product targets customers aged between 55 and 85, though the minimum age is set to increase to 57 from 6 April 2028.

Customers can choose a fixed term that best suits their needs, ranging from three to 25 years, with a minimum purchase price of £10,000.

Standard Life managing director for individual retirement, Claire Altman, said: “There is increasing awareness around how blended retirement income solutions can often better meet peoples’ needs in retirement and the industry is responding with innovation happening across the retirement income market.

"Having an element of guaranteed income is an important part of this mix.”

The product will be available on the open market through advised and non-adviser routes, including industry quote comparison portals and leading specialist annuity brokers.

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