Aegon says it is committed to the third way annuities market, despite its decision to withdraw its popular 5 For Life product earlier this month.
The insurer says it would be 'irresponsible' to offer a product that was unsustainable given current market conditions, and believes it new offering will remain a good option for consumers.
On 2 June, Aegon confirmed it would withdraw its 5 For Life third way annuity product, which offered a 5% income for life, as well as the possibility of investment growth.
The product was launched to much fanfare in 2006, but will now be replaced with the Secure Lifetime Income Plan at the end of June.
Secure Lifetime Income will offer age-related guarantee, as well as an income escalator option.
Aegon spokesman Mark Locke says the firm is committed to providing third way annuities to the UK market, but has a duty to its customers to offer sustainable options.
"As an insurer we have a responsibility to offer products that are good for consumers, but which are also sustainable for the long-term," he explains.
"The new plan will reflect market conditions, but we intend to remain competitive and Secure Lifetime Income will offer some innovative features for customers."
Aegon's new third way product will be available from 29 June, and details will be made available nearer to launch.
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