Pension ULIP sales grew nearly 10-fold in FY26 from the previous year, data from Policybazaar showed, indicating how investors are preparing for retirement.
While investors above 45 are driving demand for retirement-focused market-linked products, millennials are increasingly opting for guaranteed return plans that offer certainty and predictable outcomes. The trend suggests Indian households are moving towards a balanced approach to long-term financial planning, one that combines growth, protection and retirement readiness within the same portfolio.
Older investors lead retirement planning push
Investors aged above 45 years account for 40 per cent of Unit Linked Insurance Plan purchases, according to Policybazaar. Another 35 per cent comes from the 36-45 age group, meaning three-quarters of adoption is concentrated among investors aged above 36.
The data suggests many Indians are turning their attention to retirement planning later in life, often after meeting major financial commitments such as children’s education, home purchases or family responsibilities.
At the same time, younger investors are also beginning to participate. The 26-35 age group contributes 23 per cent of pension ULIP purchases, indicating growing awareness of long-term retirement planning during the early earning years.
Millennials prefer certainty through guaranteed plans
While older investors are gravitating towards retirement-focused market-linked products, millennials are driving demand for Guaranteed Return Plans (GRPs).
Investors aged 26-35 account for half of all GRP purchases, while more than 85 per cent of buyers fall within the 26-45 age bracket.
The trend reflects the financial priorities of salaried professionals and young families who are looking for predictable returns and disciplined savings for medium- and long-term goals. In an environment marked by market volatility and economic uncertainty, guaranteed-return products continue to appeal to investors seeking stability alongside growth-oriented investments.
Wealth creation and wealth protection are no longer separate
One of the most significant findings from the data is the growing tendency among investors to combine market-linked and guaranteed products within their portfolios.
Pension ULIPs, which offer exposure to market-linked growth, have emerged as one of the fastest-growing retirement products. At the same time, Guaranteed Return Plans continue to attract investors focused on capital protection, predictable returns and financial certainty.
This suggests that investors use one set of products for long-term wealth accumulation and another for preserving wealth and meeting future income needs.
Participation widening across income levels
The data also shows that retirement-focused products are no longer restricted to affluent investors.
For Pension ULIPs, investments start from as little as Rs 5,000, while the average monthly contribution stands at around Rs 8,000. At the higher end, investments have reached as much as Rs 30 lakh.
Similarly, Guaranteed Return Plans have a minimum monthly investment of Rs 2,000 and an average ticket size of Rs 6,000, making them accessible to a broad range of households.
Policybazaar’s figures indicate that both products are attracting everyone from first-time savers to high-net-worth individuals (HNIs).
Among affluent investors, average annual investments range between Rs 90,000 and Rs 1 lakh across both categories. Non-resident Indians (NRIs) are also showing interest, investing around Rs 2.79 lakh on average in Pension ULIPs and more than Rs 2 lakh annually in GRPs.
Metro cities dominate, but smaller towns are catching up
Metropolitan cities continue to account for about 60 per cent of purchases across both product categories.
However, Tier-II and smaller cities now contribute nearly 30 per cent of adoption, highlighting growing awareness of retirement planning beyond India’s largest urban centres.
The trend mirrors the broader expansion of financial products into non-metro markets, supported by digital distribution and increased financial literacy.
Women remain underrepresented
Despite growing awareness of long-term financial planning, participation remains heavily skewed towards men.
According to the data, men account for 90 per cent of investors across Pension ULIPs and Guaranteed Return Plans, while women make up only 10 per cent.
The gap highlights the continuing need for greater financial inclusion and retirement planning awareness among women, particularly as life expectancy rises and financial independence becomes increasingly important.
Monthly investing becomes the norm
Another notable trend is the strong preference for monthly contributions over annual payments.
Across both Pension ULIPs and Guaranteed Return Plans, most investors choose monthly premium payments, reflecting a shift towards systematic, salary-linked investing and better cash-flow management.
Sameep Singh, business head, savings, Policybazaar.com, said investors are increasingly seeking both wealth creation and wealth protection within the same financial journey rather than choosing one over the other.
The data suggests that retirement planning in India is gradually moving from a niche activity to a mainstream financial priority. As life expectancy rises and retirement costs increase, more investors appear willing to start planning earlier—and with a wider mix of products than before.