By Jennifer Hill

LONDON (Reuters) - Insurers are attempting to revamp the pensions market with a new breed of products that aim to give the best of two worlds.

The ability of self-invested personal pension (SIPP) savers to draw an income from their pension savings while leaving their fund invested has given rise to the innovation of "third-way" pension products.

These aim to give the safety of an annuity, as well as the growth potential of income drawdown.

Aegon last week unveiled details of its "Income for Life" product, which provides a guaranteed income for life no matter what happens with the underlying investment or how long the retiree lives.

Aimed at people aged 55 to 70, it allows the customer to keep control of where their money is invested until age 75.

Standard Life plans to launch a similar product this summer, while Prudential is looking at bringing out its own version.

"Only insurers can do this on their SIPP," said John Lawson, head of pensions policy at Standard Life.

"Guaranteed income allows customers to remain invested in more volatile -- but potentially greater reward -- assets such as equities, without bearing the downside investment risk.