Pension ULIP Sales Jump Nearly 10-Fold in FY26 as Retirement Planning Gains Momentum

Indian investors are placing greater emphasis on retirement preparedness, with Pension Unit Linked Insurance Plans (ULIPs) witnessing a sharp rise in demand during FY26.  

Data from Policybazaar shows that retirement-focused products are attracting participation across age groups and income segments as households seek a mix of wealth creation, income security and long-term financial stability. 

Older Investors Lead Pension Product Adoption 

Retirement-oriented market-linked products continue to find the strongest traction among mature investors. Individuals above 45 years accounted for 40% of Pension ULIP purchases during FY26, while the 36-45 age group contributed another 35%. 

Together, investors aged above 36 represented three-fourths of total Pension ULIP adoption. The trend suggests that many individuals are prioritising retirement planning after addressing key life-stage financial commitments such as housing, education, and family expenses. 

At the same time, participation from younger investors is also increasing. The 26-35 age group accounted for 23% of purchases, reflecting growing awareness about the benefits of starting retirement planning earlier. 

Guaranteed Return Plans Gain Popularity Among Millennials 

While Pension ULIPs are attracting investors seeking long-term market-linked growth, Guaranteed Return Plans (GRPs) are finding strong acceptance among millennials looking for predictable outcomes. 

Investors aged 26-35 represented 50% of all GRP purchases, while more than 85% of buyers belonged to the 26-45 age bracket. The preference highlights demand for products that combine disciplined savings with certainty in returns, particularly amid periods of market volatility and economic uncertainty. 

Participation Expands Beyond Traditional Investor Segments 

The data indicates that retirement-focused products are becoming accessible to a broader set of investors.  

Pension ULIP investments start at ₹5,000, with the average monthly contribution standing at around ₹8,000. At the upper end, investments have reached as high as ₹30 lakh. 

Guaranteed Return Plans require a minimum monthly investment of ₹2,000 and record an average ticket size of around ₹6,000. Among affluent investors, annual investments across both categories range between ₹90,000 and ₹1 lakh. 

Interest is also emerging from overseas Indians. Non-resident Indians (NRIs) invest an average of ₹2.79 lakh in Pension ULIPs and more than ₹2 lakh annually in Guaranteed Return Plans. 

Retirement Planning Spreads Beyond Metro Cities 

Metropolitan cities continue to account for around 60% of purchases across both product categories. However, Tier-II and smaller cities now contribute nearly 30% of adoption, indicating broader awareness of retirement planning across the country. 

The data also highlights a significant gender gap. Men account for 90% of investors in Pension ULIPs and Guaranteed Return Plans, while women represent only 10% of participation. 

In addition, monthly premium payments remain the preferred mode of investing, reflecting a growing shift towards systematic and salary-linked savings habits. 

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Conclusion 

The sharp rise in Pension ULIP sales during FY26 points to increasing focus on retirement planning among Indian households. As investors combine market-linked growth products with guaranteed-return options, retirement preparation is gradually becoming a mainstream component of long-term financial planning.   

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