The firm, which launched five for life in 2006, says the move reflects the “prevailing market conditions”.
Five for life currently offers a minimum 5 per cent guaranteed income for life from age 60.
The new product, the secure lifetime income plan, will provide age-related guaranteed income levels when it replaces five for life on June 29.
The product will also provide an income escalator feature, which lets customers lock in increases in income levels.
There will be no change to the terms and conditions for existing five for life customers.
Money Marketing revealed in March that Aegon was increasing prices on its income for life plan after market volatility caused the price of guarantees to shoot up.
The firm reduced the level of guaranteed income by 1.5 per cent for new business across all age brackets.
Aegon, Lincoln and Metlife, which also put prices up in March, rushed to reassure advisers that they are committed to the third way market after The Hartford pulled out of the UK early last month.
Aegon Scottish Equitable International managing director David Healy says: “There is a substantial market in the UK of customers who require the security of a guaranteed minimum income for life but also want the opportunity for that income to increase over time by participating in potential equity growth.
“While other providers have come and gone, Aegon remains fully committed to this market. The new Aegon secure lifetime income plan aims to meet customer needs in the current market climate and will provide valuable guarantees at an appropriate and affordable cost.”