Frank Gayton, head of practice for Industry Funds Financial Planning, said that a guaranteed annuity offered by an industry fund would be a very attractive product.

It could have various options, such as different guaranteed rates and investment periods, and provide some guaranteed income to run alongside an allocated pension.

A variable annuity product, which was banned in the 1980s, could be an even better option, he said.

Howes said that Challenger was in early-stage discussions with some super funds about providing a unitised version of an annuity.