Aviva launches new ‘flex first, fix later’ pension product: Aviva Guided Retirement

Aviva has today announced the launch of its new Aviva Guided Retirement solution. This ‘flex first, fix later’ retirement income solution is a blended approach that combines pension drawdown strategies with a later-life annuity. It is a retirement strategy that aims to provide workplace pension customers with a sustainable income for life.

It is designed to support pension savers, who don’t pay for financial advice, with the complex decisions they face at retirement by providing a guided framework that supports their changing needs.

From today, it is available to workplace pension customers who are members of the Aviva Master Trust ^[1]. They will have access to the Aviva Guided Retirement modelling tool and ongoing support throughout retirement. Aviva plans to offer the new proposition to more of its workplace pension customers in the future.

Simon Ellis, Commercial Director for Workplace Pensions at Aviva, said, “We’re proud to launch Aviva Guided Retirement. This innovative solution demonstrates our commitment to delivering cutting-edge retirement products which reflect the changing needs of retirees today and in the future. Aviva Guided Retirement stands out for the ongoing guidance and tools it offers Aviva Master Trust members which will help empower them to prepare for and adapt to all stages of retirement.”

The recently announced Pension Schemes Bill outlines key measures for those nearing retirement, including a likely requirement for pension schemes to provide clear and accessible default options for converting savings into a sustainable retirement income.

Simon Ellis said, “It’s great to see the Pension Schemes Bill focusing on the full retirement journey. At Aviva, we want to help savers get ready for better retirements by ensuring their pension savings last a lifetime – and the Aviva Guided Retirement solution is built around that principle. This means we’ll be able to offer a solution that not only meets regulatory requirements but also reflects what members have told us they want: a retirement journey that offers both flexibility and security.”

Aviva Guided Retirement aims to provide a sustainable income by dividing customers’ pension savings into three pots: Flexible Income Pot, Guaranteed Income Pot, and Occasional Spending Pot. This three-pot model is designed to prioritise flexibility in the early years of retirement and security in the later years. Before splitting the pension money between the three pots, members have the option to take up to 25% as a tax-free cash lump sum. With each pot designed to meet a different need, members have a practical framework in place to help them feel more confident before, at, and throughout retirement. Customers will be able to tailor the solution to suit their needs and the modelling tool is designed to facilitate alterations as and when their circumstances change.

Dr. Chris Noon, Chair of the Aviva Master Trust, said: “The launch of Aviva Guided Retirement marks a significant step forward in our ongoing commitment to supporting Aviva Master Trust members with innovative and practical solutions that adapt to their evolving needs. By blending flexibility with long-term security, this solution empowers members to approach retirement with greater confidence. It also endorses the Aviva Master Trust’s leadership in defined contribution provision across the UK - setting a new benchmark for how pension schemes can deliver lasting value and guidance throughout the retirement journey.”

A recent report by Aviva and Age UK (published in May 2025) – Retirement Reality: Managing money in mid-retirement ^[2] - found less than half (48%) of mid-retirees are confident they are on track to make their private pension savings last for life. Also, nearly two thirds (65%) think there is not enough support for people managing their financial needs as they age. Modelling within the report illustrated that withdrawing more than 7% annually from a private pension from the age of 75 demands careful financial discipline – and without the right advice and guidance, there’s a risk those pension pots could be depleted too quickly.

The report recommends that ‘flex first, fix later’ retirement income solutions should become the norm. The research finds these have the potential to deliver better outcomes for people approaching the later part of their life, safeguarding people against major difficulties that may lie ahead for some.

More information on Aviva Guided Retirement can be found on Aviva’s website:  www.aviva.co.uk/business/workplace-pensions/guided-retirement

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References:

^1. _{A master trust is an occupational pension scheme. The Aviva Master Trust, which has over 500,000 members, consists of just one legal trust and a single board of Trustee Directors, which acts as trustee for the whole trust. Each employer using the trust has its own section within the overall arrangement. [↑]}

^2. _{Aviva and Age UK - May 2025 - Retirement Reality Report: Managing money in mid-retirement.  In-depth study into the financial reality faced by today’s pensioners trying to manage their pension savings and wider finances in mid-retirement, and the potential solutions for future retirees. [↑]}

_{- Research by Ignition House, a research consultancy specialising in market research and consulting. It is based on an online survey conducted with a nationally representative sample of 1,000 UK people aged 65-75 years old who hold a non-advised private pension, excluding people in receipt of state pension only and those with more than £20,000 defined benefit pension household income per year. Research was conducted from October to November 2024.}

_{- Exclusive modelling for the report by the Pensions Policy Institute (PPI) shows those mid-retirees over 75-years-old who are withdrawing from a £100,000 pension pot at a rate of more than 7% are at significant risk of depleting pension pots prematurely, with a 10% withdrawal rate expected to exhaust pension pots in 13 years. For example, a 75-year-old couple with a pension savings pot worth £100,000 who withdraw from it at a rate of 10% have a 75% chance that the money will run out while one of them is still alive.}

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