Tata AIA Life's Smart Pension: See 30-year investment returns

Tata AIA Life Insurance has introduced its Smart Pension Secure Plan, a Unit-Linked Pension Plan (ULIP) specifically designed for the modern professional's retirement needs. Smart Pension Secure Plan is available with Tata AIA Alpha 50 Index Pension Fund.

 

“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,” the company said in a press release.

 

The plan particularly targets millennials, who make up over 440 million of India's population and often lack traditional pension benefits. It caters to various modern retirement scenarios, including those pursuing FIRE (Financial Independence Retire Early) and entrepreneurs making career transitions.

 

 

“Millennials and FIRE aspirants aspire for new age financial planning as they prioritise early retirement and maximum wealth creation. 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,” said Jeelani Basha, president & chief distribution officer at Tata AIA Life Insurance.

 

Key features of Smart Pension Secure plan 

  Market-linked returns: Multiple funds across asset classes with option to allocate 100 per cent 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 and loyalty additions.

 

Tata AIA 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 under section 80CCC and avail 60 per cent tax free on lump sum at maturity

 

Added protection coverage: In-built waiver of premium option to secure family needs at the time of distress.

 

The company has partnered with major digital platforms including Policybazaar, Tata Neu, and PhonePe to ensure widespread accessibility. 

 

Know how a 30-year investment will turn out: 

 

Please note that this is a market-linked product. Hence, the return will depend on the performance of the underlying market measure.

 

 

Key risks to consider according to experts before investing:

 

Market risk: Since this is a unit-linked plan with equity exposure (especially in the Alpha 50 Index Pension Fund), there's a risk of market volatility affecting your returns. The fund value can go up or down based on market performance.

 

Lock-in period: Pension plans typically have long lock-in periods, which means reduced liquidity and limited access to your funds.

 

Inflation risk: While the plan aims to combat inflation (mentioned as around 10 per cent for medical expenses), there's no guarantee that returns will keep pace with future inflation rates.