ING Australia has launched MoneyForLife, a new retirement income product that promises to banish investor concerns of ever outliving their savings.

For a minimum investment of $50,000, anyone from age 18 to 85 can access the product. Depending on the person's circumstances, MoneyForLife offers a guaranteed annual income of between 4 to 5 per cent for life, even after their capital runs out. When the account holder dies and there is still money left in the account, it is given to their nominated beneficiary.

Group executive Harry Stout said the product was built from the ground up, tailored specifically to the Australian market and its unique tax regime, compulsory superannuation system and legislation around retirement.

He said MoneyForLife differs from existing retirement income products on three fronts: investors direct how the money is invested, the capital is not locked up and there are no penalty fees if you change your mind and you withdraw the entire sum, and it addresses one of the risks long overlooked by the market: longevity risk.

"Australia's superannuation system may be one of the most sophisticated in the world, but it is really geared towards accumulation," he said. By contrast, MoneyForLife identifies the growing product gap in the market - products for people who are moving out of the accumulation phase and into decumulation, such as the baby boomers.

More importantly, last year's market crisis was also a tough lesson learnt for investors whose retirement plans weren't designed for severe bear markets.

"In a simplistic way, this product deals with the three C's: certainty (income for life), control (access to account balance) and confidence...where people can make life decisions based on their personal goals, not market cycles," he said.

The product will be available on ING's OneAnswer platform with total MER ranging between 2.75 to 3.15 per cent, of which 1.5 per cent covers the cost of the guarantee.