Aviva has introduced a new fixed term retirement income plan allows customers the option of taking tax-free cash, if they haven't already, an income, or both from their pension fund.

The life insurer said the plan offers two investment options, each with a guarantee around the value on maturity of the plan.

It said depending on the investment options selected, customers can hold the plan for a fixed term of a minimum of five and maximum of 10 years.

According to the Aviva, between this period plan cannot be cashed in and when the plan matures, the customer can use their remaining pension fund to buy another retirement product, allowing them to reassess their circumstances at that point.

Aviva retirement director Clive Bolton said the Fixed Term Retirement Plan offers some great advantages. By investing for a fixed period of time, customers know they will have the chance to reconsider their financial needs and requirements in the future, and make a further decision on how to best use their pension fund at that point.