Standard Life has announced the launch of a new individual annuity designed to meet the increasing need for certainty and security among those approaching or at retirement.

The firm acknowledged that it can be tricky for people to plan for retirement, with research revealing that certainty of income in retirement is important to over78 per cent of savers, while over half (58 per cent) worry about running out of money in the future.

In addition to this, more than two thirds (68 per cent) of people said they would like a guaranteed income to meet their essential expenses, together with some income remaining flexible for non-fixed expenditures.

Given market volatility, economic uncertainty, and the fact that life expectancy can be difficult for people to predict, Hargreaves Lansdown admitted that it can be difficult for savers to know how long their savings will need to last.

However, Standard Life noted that annuities are increasingly better value, having risen 20 per cent in the past year, highlighting annuities as an "ideal solution for many".

In particular, 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.

Available through both advised and non-advised routes, the annuity is fully medically underwritten, designed to help ensure those suffering from lifestyle and/or medical conditions get more for their money, as well as for people who are in good health.

Commenting on the launch, Standard Life managing director for individual retirement, Claire Altman, stated: “It is an exciting time to be launching a new guaranteed income product on the open market.

"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.

“Retirement income doesn’t have to be a binary choice between drawdown and annuities.

"By purchasing an annuity in combination with other solutions, such as drawdown, we can meet this desire for potential flexibility and certainty, allowing people to enjoy the best of both worlds.

"Purchasing later in retirement, or in stages, also allows someone to benefit from the way that annuity rates generally improve with age.

“We are committed to helping all our customers achieve the best possible outcomes in retirement, and we believe guaranteed income has an important role to play as part of a wider toolkit of solutions that can help people manage their retirement savings and delivers certainty together with flexibility and potential growth.

"The Standard Life Pension Annuity has been launched with this in mind, amid growing awareness of how guaranteed income can complement other retirement solutions.”

The launch has also been welcomed by other industry organisations, as Hargraeves Lansdown head of retirement analysis, Helen Morrissey, highlighted the launch as a "welcome boost to the annuity market" that gives further choice to those in need of a guaranteed income in retirement.

“We saw provider numbers fall as the combination of freedom and choice and more than a decade of low interest rates decimated annuity demand," she continued.

"However, the surge in annuity rates we’ve seen over the past 18 months has reinvigorated the market.

“Increased competition from such a well-known name should help drive higher incomes for retirees and benefit the annuity market as a whole.”

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