Pension ULIP Sales Surge Nearly 10-Fold In FY26 As Indians Prioritise Retirement Planning
New Delhi, June 02: Retirement planning is becoming a major financial priority for Indian households, with Pension ULIP sales witnessing a sharp rise in FY26.
According to data released by Policybazaar, Pension ULIP purchases grew nearly 10 times compared to the previous financial year, reflecting a growing focus on long-term financial security and retirement preparedness among Indian investors.
The report highlights a changing investment pattern where both younger and older Indians are increasingly balancing wealth creation with financial protection.
Older Investors Driving Pension ULIP Growth
The report shows that investors above the age of 45 are leading the demand for retirement-focused market-linked products.
People in the 36-45 age group account for another significant share of Pension ULIP purchases, meaning nearly 75 per cent of investors belong to the age group above 36 years.
Experts believe many Indians start actively planning for retirement after handling major life responsibilities such as home loans, children’s education, and family commitments.
At the same time, younger investors are also entering the retirement planning space. The 26-35 age group contributes around 23 per cent of Pension ULIP purchases, indicating rising awareness about early retirement planning and long-term wealth accumulation.
Millennials Prefer Guaranteed Return Plans
While older investors are choosing market-linked retirement products, millennials are increasingly opting for Guaranteed Return Plans (GRPs).
According to the report, investors aged between 26 and 35 account for nearly half of all GRP purchases, while more than 85 per cent of buyers fall within the 26-45 age bracket.
Financial experts say younger salaried professionals and families are preferring products that offer stable and predictable returns amid uncertain market conditions and rising economic volatility.
The trend reflects growing demand for disciplined savings and long-term financial stability.
Investors Combining Growth With Protection
One of the biggest shifts highlighted in the report is that investors are no longer treating wealth creation and wealth protection as separate goals.
Many investors are now:
- Choosing Pension ULIPs for long-term market-linked growth
- Using Guaranteed Return Plans for stability and future income security
Experts believe this balanced investment strategy is becoming increasingly common among Indian households looking to secure their future while continuing to build wealth.
Retirement Products Expanding Beyond Wealthy Investors
The report also shows that retirement-focused investment products are becoming accessible across income groups.
For Pension ULIPs:
- Investment amounts start from ₹5,000
- Average monthly contribution is around ₹8,000
- Some investments have reached as high as ₹30 lakh
For Guaranteed Return Plans:
- Monthly investments begin from ₹2,000
- Average contribution is around ₹6,000
The data suggests that retirement planning products are now attracting everyone from first-time investors to high-net-worth individuals and NRIs.
Smaller Cities Showing Rising Participation
Metro cities continue to dominate retirement-focused investments and account for nearly 60 per cent of purchases.
However, Tier-II and smaller cities are rapidly catching up and now contribute nearly 30 per cent of adoption across both Pension ULIPs and Guaranteed Return Plans.
Experts believe increased financial literacy, digital investment platforms and easier online access to financial products are helping retirement planning expand beyond India’s major urban centres.
Women Still Underrepresented In Retirement Investments
Despite growing awareness around long-term financial planning, participation remains heavily skewed towards men.
According to the report:
- Men account for nearly 90 per cent of investors
- Women represent only 10 per cent
Financial experts say the gap highlights the urgent need for stronger financial inclusion, retirement awareness and independent investment planning among women.
