Standard Life said last week that it will be launching a variable annuity product this summer for all new and existing Sipp customers.
Prudential, Legal & General and Axa are also understood to be looking closely at launching similar products.
An Aegon spokesman says: “It will work in a similar way to income drawdown but with an appropriate fund range that will allow us to provide guarantees on income.
“There will also be different levels of income guarantees available depending on customers ages at outset.”
Legal & General wealth policy director Adrian Boulding says: “These are potentially great products for customers but they do not sell terribly well as they are a bit complicated and all very different.
“It makes it difficult for the IFA to do the traditional broking on them. I am hoping the market will reach a degree of standardisation.”