Irish Life has launched an inflation-proof annuity product. The annuity is linked to the Consumer Price Index, meaning the level of pension that an investor receives each year in retirement increases in line with inflation.

For example, a £100,000 (€127,000)retirement fund for a man aged 65 will provide an income of approximately £9,000 a year. However, using inflation of 2.5 per cent each year, by the time the man is 80 this will only be worth about £6,200 in today's terms, says Irish Life. This is the first of a number of Irish Life annuity products in development.

Irish Life has also produced a marketing and jargon-free guide: All you need to know about annuities. For a free copy of the booklet, call Irish Life Corporate Business Marketing at (01) 704 1845.