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Life company Aegon is launching a pensionable version of its Five for Life.

This new product, which is being launched before summer, will focus on the growing variable annuities space. The original product aimed to give clients a guaranteed income from the age of 60.

Aegon said that it is unable to give the name or any details about the new product, but Mark Locke, public relations manager, said: "We are going to be doing something in the variable annuities space. Five for life was launched in September 2006 which was the first type of variable annuity. There have been a few launches from MetLife and Hartford and we will be competing in that space.

"The Five for Life version we had was not pensionable, and we are looking to launch a pensionable version of it. We cannot give all the details of it. The product will between an annuities product and drawdown. The launch is going to happen before summer. But I cannot give any product details, because it is currently being finalised."

IFA Christopher Wicks, from Alexander Beard Group, said: "There are a variety of these types of products coming into the market. My belief is that these types of plans are very expensive for what they do, they offer some guarantees the actual cost of the investment is very high.

"Do you need to buy something like this if you wish to continue to be invested? If you are risk adverse when you retire, you can have a guaranteed income in the form of an annuity that gives you your money every month.

"If you want to continue to be invested in some basis, buying a very expensive product to provide you with some security seems to be a very expensive way of delivering pretty uncertain results. If someone wants to continue to be invested they should have a risk profile excises to determine the way that they sit in terms of risk and put together an asset allocation.

"I believe in passive investments so they would achieve more predictable results at substantially lower costs. Use a drawdown arrangement or similar arrangement to construct an appropriate asset allocation using conventional investments. You cannot have it both ways, in terms of risk and reward, product providers are trying give you both with this type of product."