Nearly 60% of retirement policy buyers are under 40: Policybazaar
Young Indians are starting to plan for retirement much earlier than before, according to a new report by Policybazaar. The data shows nearly 60% of retirement policy buyers are under the age of 40.
The report highlights a shift from the old pattern of starting retirement planning closer to age 50. Millennials and Gen Z professionals are securing their post-60 years decades in advance, driven by longer life expectancy, rising inflation, and lack of guaranteed pensions in private jobs.
Market-linked products dominate the mix. Unit Linked Insurance Plans (ULIPs) make up more than 98% of all retirement portfolios. Retirement ULIPs hold a 57.8% share, while Pension ULIPs — introduced just last year — account for 41.6%. Traditional and capital guarantee plans stay below 1%.
Vivek Jain, Chief Business Officer, Life Insurance, Policybazaar, said, “The notion that retirement planning starts at 50 no longer holds true. Young Indians today are thinking decades ahead, actively opting for market-linked plans like ULIPs and Pension ULIPs that offer both growth and post-retirement income.”
Retirement planning is not just an urban trend. About 75% of retirement policies come from Tier-2 and Tier-3 cities, while only 24.7% are from Tier-1 cities.
Income levels show that 40% of buyers earn between ₹5–10 lakh per year, while 26% earn less than ₹5 lakh. About 34% of buyers earn more than ₹10 lakh annually.
Non-Resident Indians (NRIs) now make up 10% of the total retirement policy volume. Their average ticket size is ₹2.25 lakh, about 2.5 times higher than domestic buyers. Most NRIs buying retirement products are from the Gulf region. NRIs also start later — 16.5% are over 50 when they invest, compared to 11% among domestic customers.
Policybazaar’s report found that retirement investors prefer equity allocations in ULIPs and tend to stay invested without frequent switches. Deferred annuity options are more popular than immediate ones, pointing to a focus on bigger payouts later.