Policybazaar, Tata AIA Collaborate to Transform Retirement Planning with Balanced Growth

Gurugram (Haryana) [India], April 10: Bringing a unique blend of stability and market-linked growth to retirement planning, Tata AIA today launched Shubh Flexi Pension plan in association with Policybazaar. The plan is a variable annuity solution that seeks to reframe how Indians approach retirement planning by combining predictability with participation in market growth.

The launch comes at a time when the traditional retirement approach is constantly evolving. Longer life expectancy is stretching retirement into multiple decades, while inflation continues to erode purchasing power. Against this backdrop, the Shubh Flexi Pension Plan introduces a dual-structure annuity. One part delivers a guaranteed income for life, which protects customers from longevity and reinvestment risks. The other is linked to the NIFTY 50, which allows a portion of the payout to grow in line with India’s equity markets. Customers can decide the balance between these two streams at the outset.

Vivek Jain, Chief Business Officer, Life Insurance, Policybazaar.com, added, “Retirement needs are no longer as static as they once used to be. It is now a multi-decade phase that needs both security and growth. This plan moves beyond traditional solutions by integrating guaranteed income with market participation. Our association with Tata AIA brings this vision to life through a product that gives customers greater control over how they structure their retirement income.”

Jeelani Basha, Chief Business Officer – Partnership Distribution and Group business, Tata AIA Life Insurance, said, “At Tata AIA, we believe retirement planning should be as unique as the individual. With the launch of the Shubh Flexi Pension Plan, we are offering our customers an innovative solution that combines security and growth. By giving them the option to align their income with market performance, we’re enabling them to maintain their lifestyle and stay ahead of inflation. This plan truly reflects our mission to provide products that not only meet our customers’ current needs but also evolve with their future aspirations.”

How the plan works: A 50-year-old investing ₹12 lakh annually for 10 years (amounting to ₹1.2 crore) could receive a guaranteed income of about ₹5.17 lakh per year starting age 60. With the variable component, total payouts begin at roughly ₹5.3 lakh annually and, assuming a 14% CAGR on the market-linked portion, may rise to around ₹16.2 lakh by age 80. While the guaranteed portion remains fixed, the variable component reflects market performance and is not assured.

The product design leans on the long-term performance of the NIFTY 50, which has delivered approximately 12.2% CAGR since inception and about 14% over the past two decades. More importantly, it attempts to solve a structural gap in retirement products, which is the ability to generate income that not only lasts a lifetime but also keeps pace with rising costs.

Source: For returns since inception:  https://www.niftyindices.com/Factsheet/ind_nifty50.pdf

For the 14% CAGR, you can take the Nifty 50 TRI values from 31st Jan 2005: 2393.76 & 31st Jan 2025 Value: 34998.01. which is a 14% CAGR.

Link:

https://www.niftyindices.com/reports/historical-data

With flexible premium payment structures, a deferment window of up to 20 years, and a return-of-premium benefit for nominees, the plan broadens the design of annuity products in India.

Tata AIA Life Shubh Flexi Pension Plan (A Non-Linked, Non-Participating Annuity Plan): 110N209V02

About Policybazaar

As India’s one of the largest insurance brokers, Policybazaar is committed to making insurance accessible, transparent, and personalised for every Indian and global customer. Since 2008, Policybazaar has empowered over 80.5 million registered users, issued 49.3 million policies, and helped protect 9 million families against death, disease, and disability. With a dominant market share of over 93% in India’s digital insurance aggregator space and over Rs 15,000 crore in annual premium collection (FY24), Policybazaar works with 50+ insurance partners offering products across health, life, motor, and corporate insurance. The company supports customers with 24/7 digital assistance and an on-ground team of 6,000+ insurance advisors, ensuring a seamless experience across all touchpoints.

About Tata AIA Life

Tata AIA Life Insurance Company Limited (Tata AIA) is a joint venture Company formed by Tata Sons Pvt. Ltd. and AIA Group Ltd. (AIA). Tata AIA Life `combines Tata’s pre-eminent leadership position in India and AIA’s presence as the largest, independent listed pan-Asian life insurance group in the world, spanning 18 markets in the Asia Pacific region. Tata AIA reported a total Premium Income of INR 31,484 crore for FY25, up 23% from FY24. The Company continues to rank among the Top 3 Private Insurers in Individual Weighted New Business Premium (IWNBP) with an IWNBP income of INR 8,511 crore. The Company also achieved industry-leading Persistency performance (based on premiums), ranking #1 in four out of five cohorts. For more information on Tata AIA Life’s product portfolio and retirement solutions, please visit www.tataaia.com. 

About the Tata Group  

Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in India, comprising 30 companies across ten verticals.

The group operates in more than 100 countries across six continents, with a mission ‘To improve the quality of life of the communities we serve globally, through long-term stakeholder value creation based on Leadership with Trust’.

In 2023-24, the revenue of Tata companies, taken together, was more than $165 billion. These companies collectively employ over 1 million people.

Each Tata company or enterprise operates independently under the guidance and supervision of its own board of directors. There are 26 publicly listed Tata enterprises with a combined market capitalisation of more than $365 billion as on March 31, 2024.

About AIA 

AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent publicly listed pan-Asian life insurance group. It has a presence in 18 markets –wholly-owned branches and subsidiaries in Mainland China, Hong Kong SAR(3), Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei and Macau SAR(4), and a 49 per cent joint venture in India. In addition, AIA has a 24.99 per cent shareholding in China Post Life Insurance Co., Ltd. 

The business that is now AIA was first established in Shanghai more than a century ago in 1919. It is a market leader in Asia (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$305 billion as of 31 December 2024.

AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia, AIA serves the holders of more than 43 million individual policies and 16 million participating members of group insurance schemes.

AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock codes “1299” for HKD counter and “81299” for RMB counter with American Depositary Receipts (Level 1) traded on the over-the-counter market under the ticker symbol “AAGIY”.

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