Bengaluru, 03 February 2025: As career dynamics evolve and life expectancy rises, India’s workforce is seeking solutions that go beyond traditional retirement planning. Whether it is the FIRE (Financial Independence Retire Early) generation, aspiring entrepreneurs, or individuals navigating career shifts, retirement planners are increasingly prioritising smarter ways to secure a robust retirement corpus. Projections from the Global Burden of Disease Study (GBD) 2021 reveal that by 2050, Indian men and women will live an average of 4-5 years longer, that is for 76-80 years. Hence the need for innovative, flexible, and growth-oriented financial solutions has never been greater.
To address this growing demand, Tata AIA Life Insurance (Tata AIA) has launched the Smart Pension Secure Plan, an innovative Unit-Linked Pension Plan (ULIP) designed to align with new-age retirement needs. From creating second income streams to securing retirement savings, this plan caters to the aspirations of digital natives and modern professionals seeking financial security and independence.
Why Smart Retirement Planning is Critical in Today’s Age
- Longer Life Expectancy: With Indian men and women expected to live longer by 4 – 5 years till the age of 76 – 80 (GBD Study 2021), retirees need a steady income for longer durations.
- Changing Demographics: Millennials, who represent over a third of India’s population (440 million individuals), face the dual challenges of longer retirement and lack of traditional pension benefits.
- Entrepreneurial Mindset: More and more individuals are embarking on major career shifts or launching their own startup ventures. Even as they do so, they wish to ensure that their retirement related needs are addressed, amid the risks of jumping on the entrepreneurial bandwagon.
- Lifestyle Aspirations: Modern retirees want to continue with their lifestyle even after retirement, making market-linked growth opportunities and flexible solutions essential. For instance, many retirees now aspire to buy or upgrade their luxury cars or go for foreign holidays, as they were doing in their earning years. This requires smart financial planning and investing to ensure they can continue to afford these experiences.
- Rising Cost of Living: With medical inflation hovering around 10% and increasing living expenses, retirement plans need to offer not only growth potential but also address evolving needs.
Tata AIA’s Smart Pension Secure Plan is a pioneering step towards addressing these changing trends, offering market-linked growth, flexibility, and peace of mind for consumers aspiring for a secure and fulfilling retirement.
Key Features:
Smart Pension Secure Plan is customised in a way that it helps consumers live a fikar-free life. Some of its key benefits include:
- Plan Early Retirement: Complete flexibility to retire as early as age 45 years!
- Market-Linked Returns: Multiple funds across asset classes with option to allocate 100% funds in Equity. Unlimited fund-switches at no cost.
- Cost Effective Plan: Your entire premium gets invested in the funds of your choice, allowing your money to grow and pave the way for a dream retirement.
- Reward for staying invested: Online purchase comes with added Fund Boosters & Loyalty additions.
- Health Buddy: To ensure a happy and “Healthy” retirement, Health Buddy is a complementary service providing attractive discounts on pharmacy purchases and diagnostic tests at customers’ convenience. The customer can also choose for OPD services by opting for Health Secure Rider.
- Tax Benefits: Save Tax u/s 80CCC and avail 60% Tax free on Lumpsum at Maturity
- Added Protection coverage: In-built Waiver of Premium option to secure family needs at the time of distress.
Smart Pension Secure Plan is available with Tata AIA Alpha 50 Index Pension Fund. The New Fund Offer is priced at INR 10 per unit till January 31, 2025.
Why This Plan is a Game-Changer for Today’s Workforce
- Your Source of Income Post Retirement: The flexibility of market-linked investments, combined with zero premium allocation charges, enables individuals to build a strong financial cushion. By focusing on equity growth, the plan helps create a robust retirement corpus that can support second incomes, entrepreneurial ambitions, or even early retirement.
- Flexible Investing to Adapt to Equity Market Movements: Unlimited, zero-cost fund-switching options empower policyholders to adapt to market conditions, optimising returns to meet their evolving financial goals.
- Designed for Digital Natives: Seamlessly integrated into Tata AIA’s digital ecosystem including new age partners, the plan offers a convenient and intuitive experience for modern professionals who value instant and convenient purchase journeys.
- Lifestyle Security: Whether it is funding your travel aspirations or sustaining a contemporary lifestyle, the plan equips consumers with the tools to design a secure and fulfilling future. The fund’s equity focus ensures continuous wealth creation, making it a reliable choice for those planning for long-term financial independence and growth.
Commenting on the launch, Jeelani Basha, President & Chief Distribution Officer, Tata AIA Life Insurance, said: “Millennials and FIRE aspirants aspire for new age financial planning as they prioritise early retirement and maximum wealth creation. Tata AIA Smart Pension Secure Plan, available on Tata AIA’s website and leading platforms like Policybazaar, Tata Neu, and PhonePe, enables these consumers to take charge of their financial future with ease. This plan is designed for individuals who value flexibility, growth, and a seamless online experience, helping them be Har Waqt Ke Liye Taiyaar in their golden years.”
Digital Convenience at Its Core
The plan can be accessed through Tata AIA’s platforms and its digital partner ecosystem, including Policybazaar, Tata Neu, and PhonePe* enabling seamless, anytime, anywhere accessibility. These collaborations integrate Tata AIA’s customer-first approach with the advanced capabilities of these platforms, ensuring policy purchases without physical documentation. Additionally, the plan’s user-friendly digital interface allows individuals to monitor, manage, and customize their retirement investments effortlessly, offering a streamlined and tech-savvy solution for achieving long-term financial security and post-retirement goals.
Santosh Agarwal, CBO, Life Insurance, Policybazaar, says, “India’s approach to retirement planning is evolving with the growing prevalence of nuclear families and longer life spans. This shift brings forth the need for thoughtful financial planning to ensure one’s post-work years are marked by comfort and independence. Keeping these priorities in mind, Policybazaar is delighted to partner with Tata AIA Life Insurance to launch tailored financial solutions in the form of new-age ULIP pension plans. These plans are a well-structured way to balance growth opportunities with stability for the years ahead. This collaboration reflects Policybazaar’s commitment to equipping individuals with meaningful resources to navigate retirement planning.”
Amreesh Kher, Chief Business Officer – Insurance, Tata Digital said, “With the evolving needs of customers, we at Tata Digital aim to make financial planning easy and accessible for everyone. The Smart Pension Secure Plan, in partnership with Tata AIA Life Insurance, is a step towards helping our users plan for a worry-free retirement, while marking Tata Neu’s entry into the pension space. With this retirement plan, customers can manage their savings and investments digitally and conveniently, ensuring they are well-prepared for every stage of life – all on Tata Neu.”
Nilesh Agarwal – Head of Insurance Business, at PhonePe added, “India’s demographic advantage today comes with the responsibility to prepare for a secure tomorrow. With rising inflation, limited social security, and evolving family structures, the need for robust pension solutions has never been greater. We are proud to partner with Tata AIA to launch the Smart Pension Secure Plan, enabling individuals to take charge of their financial futures with flexibility and confidence, ensuring peace of mind for a worry-free retirement.”
Tata AIA has thoughtfully tailored its plans to cater to the needs of diverse consumers. There are two distinct plan options to ensure that every lifestyle is covered:
Two Plan Options to Suit Every Lifestyle
- Smart Pension Secure: Focused on market-linked investments with flexibility in fund-switching and robust death benefits.
- Smart Pension Secure Plus: Adds premium waiver benefits for continued plan security in case of the policyholder’s demise.
Plan Flexibility
- Entry Age: 35 to 75 years (varies by payment term).
- Vesting Age: Starts at 45 years, with a maximum of 85 years for Single/Limited Pay and 75 years for Regular Pay.
- Policy Term: Ranges from 10 years to the maximum vesting age.
