India: ICICI Prudential launches tax-efficient pension product

| 13 Feb 2024

ICICI Prudential Life Insurance has launched ICICI Pru Gold Pension Savings, a tax-efficient pension product that enables customers to make systematic contributions and build the desired retirement corpus to lead financially independent retired lives.

According to the company, this product is also India’s first product which offers customers safety of the capital invested, complimentary health check-ups and make partial withdrawals. Customers can withdraw up to 25% of the contributions made after a period of three years enabling them to meet liquidity needs. Besides, the annual bonus, as and when declared, has the potential to further bolster the corpus and consequently the annuity.

ICICI Pru Gold Pension Savings product empowers customers, upon maturity to withdraw up to 60% of the accumulated savings and receive guaranteed regular life-long pension from the balance amount, enabling financial freedom during the golden years.

Commenting on the launch, Mr Amit Palta, Chief Distribution Officer, ICICI Prudential Life Insurance, said, “Retirement planning has assumed great importance with the rapidly changing family structures in the country. ICICI Pru Gold Pension Savings, a tax efficient product, has been designed to enable customers to make regular contributions to build the required retirement fund to be financially independent.” 

“We are cognizant of retirement planning being a long-term process and that customers’ financial circumstances can change. The partial withdrawal feature of up to 25% empowers customers to meet liquidity requirements without disrupting the retirement savings plan. This is India’s first retirement planning product which offers both partial withdrawals and safety of capital invested. To ensure customers achieve their retirement planning goal, the complimentary health check-up feature which we believe will benefit customers in their planning process,” he added. 

ICICI Pru Gold Pension Savings product provides customers’ a component of guaranteed benefit and annual bonus if declared, which has the potential to augment the maturity amount. Besides, customers can make a tax-free withdrawal of up to 60% of the accumulated savings on maturity and convert the balance into an annuity to receive guaranteed life-long income to be financially independent.

The product aligns with the company’s strategy of offering innovative life insurance solutions that cater to the evolving financial landscape and individual needs.