During the next few months, expect a rush of new retirement products that promise the world. I've been to two briefings in the past week alone – and I really don't get out that often – and there are more coming.

It seems in the wake of the GFC we're all a little bit gun shy (funny that) and are now looking for security and ways to lock in any kind of gain in our portfolios for good.

This is where a guaranteed retirement income stream – and these new whiz-bang products – comes in. Kind of like an allocated pension (and kind of not), they will provide an income stream from when you retire until you take your last breath.

AXA and ING are both launching products with “guaranteed income for life”. The income stream is usually based on a percentage of the initial investment, which is guaranteed. An investment of $200,000, for example, with a guaranteed income of 5 per cent would yield an income of $10,000.

But if markets rise, and the value of the underlying investment with it, to say $300,000, so will the income. When those rises are locked in (annually or every two years, for example) depends on the product.

But there's no such thing as a free lunch and these products are not cheap – you could pay as much as 3 per cent of your investment in fees.

Running out of money before you die has always been a concern for retirees but now they've seen just how quickly their balances can fall, I imagine they'll flock to these kinds of products in droves. But make sure you look under the hood, understand what you're paying for and are satisfied the provider will be able to commit to the guarantee they are promising.