Smart Pension Secure

What this product is

A unit-linked (market-linked) pension plan where you build a retirement corpus across equity/debt fund choices, then use the fund value at vesting to buy an annuity or take part of it as a lump sum.

You might need this if…

• You want to build a retirement corpus with equity exposure rather than a fixed-return-only pension plan
• You want flexibility to switch between 8 fund options (100% debt to 100% equity) as your risk appetite or life stage changes
• You may need occasional access to funds before retirement - the plan allows limited partial withdrawals after 5 years
• You want the option to postpone your vesting date if you're not ready to retire at the originally chosen age

How it actually works

• Entry age 35-75 (single/limited pay) or 35-65 (regular pay); vesting age 45-85 (single/limited pay) or 45-75 (regular pay)
• Minimum premium around ₹10,000/year; choose Single Pay, Limited Pay (5 yrs up to vesting-minus-entry-age) or Regular Pay (10-40 yrs)
• Money is invested across 8 fund options ranging from fully debt to fully equity, with free fund switching
• At vesting, the fund value (at prevailing NAV) is used to buy an annuity, with up to 60% allowed as a lump-sum commutation
• Death benefit is the higher of the fund value or 105% of premiums paid, plus any top-ups
• Partial withdrawals (up to 25% of fund value, minimum ₹6,000) are permitted after year 5, capped at 3 times over the policy term

Worked example

Worth knowing before you decide

• This is market-linked - unlike some other Tata AIA pension plans, there is no guaranteed return here; your eventual pension depends heavily on fund performance
• Illustrations using 8% or higher growth assumptions are scenarios, not promises - actual returns can be lower (or negative in bad years)
• Discontinuing premiums during the lock-in period means you get the fund value only after charges are deducted, which can be less than what you paid in
• A suicide exclusion in the first 12 months limits the payout to fund value less certain charges

Official source

⌟ Official product brochure

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