Retire Smart Plus

What this product is

A unit-linked (market-invested) pension savings plan where you build a retirement corpus across 7 fund choices over 10-35 years, then use it to buy an annuity or withdraw partially at vesting.

You might need this if…

• You might need this if you want market-linked growth potential for your retirement corpus rather than a fixed guaranteed rate, and you're comfortable bearing the investment risk yourself.
• You might need this if you want control over your asset allocation during the accumulation phase - 7 funds ranging from money market to 100% equity, with free switching.
• You might need this if you want flexibility at retirement: commute up to 60% of the corpus as a lump sum, buy an annuity (from SBI Life or elsewhere), or extend the accumulation period instead.
• You might need this if you may need emergency liquidity later in the policy - partial withdrawals are allowed after the 5-year lock-in for specific needs like education, medical treatment, or a home purchase.

How it actually works

• Entry age 20-60 years, vesting (maturity) age 30-70; choose Regular Premium (10-35 yr term), Limited Premium (5-8 yr pay, 15-35 yr term), or Single Premium (min ₹1 lakh).
• Money is invested in one or more of 7 pension funds (from Money Market to 100%-equity Optimiser), with unlimited free switching and premium redirection from year 2.
• A mandatory 5-year lock-in applies - no surrender or withdrawal is allowed in the first 5 policy years.
• At vesting, you get the fund value plus a 1.5% terminal addition; a further loyalty addition of 0.30% of average fund value is added annually from year 15 for longer-term policies.
• Death benefit while in force is the higher of (fund value + terminal addition) or 105% of total premiums paid; the nominee can take it as a lump sum or use it to buy an annuity.
• Charges include premium allocation charges (2.5%-6% depending on year), fund management charges (0.25-1.35% p.a.), and a monthly policy admin charge (capped at ₹500/month); no policy loan is available.

Worked example

Worth knowing before you decide

• This is a unit-linked plan, so your fund value can go down as well as up - unlike SBI Life's guaranteed savings products, there's no minimum return promise on the invested amount.
• No withdrawals of any kind (including surrender) are allowed during the first 5 years, regardless of circumstances.
• No riders are available to add on to this product.
• All fund and administration charges are deducted from your investment regardless of market performance, which drags on returns in flat or down markets.

Official source

⌟ Official product brochure

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