SBI Life Retire Smart is a pension plan that offers higher annuity payments by investing in the stock market, ensuring a secure retirement.

1. Enjoy a tranquil life after retirement.

2. Receive a regular income that is exempt from taxes.

3. Generate wealth to overcome the impact of inflation.

Invest ₹6,000 every month and receive a tax-free monthly pension of ₹60,000.

To achieve a monthly pension of ₹77,300, it is necessary to make an investment.

SBI Life Retire Smart – Important Features

  • This is a non-participating Unit Linked pension plan with Regular or Limited Premium payment options.
  • 101% of premiums paid is guaranteed on Vesting thereby reducing the impact of market risk.
  • Guaranteed Additions and Terminal Additions augment the Fund Value.
  • The Vesting Age can be extended if the policyholder is aged 55 years or less.
  • Investments are managed under the Advantage Plan, which manage investment risks and reduce the risk exposure as the plan nears Vesting.
  • On vesting, the policyholder can:
  • Below are the 3 funds are available for investment under the Advantage Plan:
      • Equity Pension Fund II
      • Bond Pension Fund II
      • Money Market Pension Fund II

Investing ₹10,000 per month will yield a monthly pension of ₹1.5 lakhs for you.

Investing ₹7,000 per month will result in a monthly pension of ₹1 lakh.


SBI Life Retire Smart – Benefits

Upon reaching the vesting period, you will receive a payout based on either the Fund Value plus Terminal Addition or 101% of the premiums paid. This amount can be utilized in different ways such as purchasing an Immediate Annuity Plan with the entire sum or a portion of it, opting for a Single Premium Deferred Annuity Plan, or deferring the Vesting Age if you are below 55 years old.

During the annuity purchase, it is possible to convert a maximum of one-third of the total amount.

In the event of death, the beneficiary will receive either the higher amount between the Fund Value plus Terminal Addition or 105% of the total premiums paid.

The lump sum amount from the death benefit can be taken out all at once or utilized to purchase an annuity plan offered by the company.

On reaching the vesting period, a sum of money equal to 1.5% of the Fund Value will be given as Terminal Additions.

The policyholder will receive a Guaranteed Addition of 10% of the annual premium starting from the 15th year of the policy until its maturity.

Tax Benefits: All the premiums paid and claims that are received under the plan are eligible for tax deductions under the Income Tax Act as per section 80CCC and section 10(10D).

SBI Life Retire Smart – Product Features

The age requirements for the SBI Life Retire Smart policy range from a minimum entry age of 30 years to a maximum entry age of 70 years. The vesting age, which is the age at which you start receiving benefits, ranges from 40 years to 80 years. The policy term can be between 10 and 35 years, while the premium paying term can be between 10 and 15 years. Premiums can be paid annually, half-yearly, quarterly, or monthly. There are different premium amounts depending on whether it is a regular pay or single pay option. The sum assured starts at Rs.100,000 with no upper limit specified.

Is it possible to make a withdrawal from SBI Life Retire Smart?


2. The withdrawal option for this type of insurance product is restricted until five years have passed.

Details about Premium

The yearly premium amount in Indian Rupees and the benefit illustration for a duration of 20 years.

The following table presents the details of SBI Life Retire Smart plan for individuals aged 50 and 60 years. The policy term is set at 20 years, with a premium amount of INR 25,000. The fund value on vesting is projected to be INR 614,601 at an interest rate of 4%, and INR 953,171 at an interest rate of 8%.

Age limit for Retire Smart Plus in India

The maximum duration for which the policy can be extended is until the age of 70. However, this extension is subject to a limit on the total length of the policy, which cannot exceed 35 years.

SBI Life Retire Smart: Policy Information

– Grace Period: If the policyholder fails to pay their premiums on time, they have a grace period of 15 days for monthly payment modes and 30 days for other payment modes to make the payment. If the premiums are not paid within this grace period, the policy will lapse.

– Policy Termination or Surrender Benefit: The policyholder can surrender their policy after completing 5 years. If surrendered before that, the fund value net discontinued charges will be credited to a separate fund where it will grow at an annual rate of 4%. After completing 5 years, the fund value in this separate fund as on that date will be paid to the policyholder without any additional charges.

– Free Look Period: Within 15 days of receiving the policy documents, if the policyholder is unsatisfied with any terms or coverage offered by the plan and no claims have been made yet, they can cancel their plan.

Is Smart Pensions a secure option?

To ensure that they are doing a good job, SBI Life works with experienced fund managers like J.P. Morgan, Legal and General Investments, and HSBC. These fund managers are well-known in the industry and have expertise in managing investments.

By working with these trusted fund managers and having independent trustees overseeing their operations, SBI Life aims to provide you with a secure retirement savings plan. They want to give you peace of mind knowing that your hard-earned money will be looked after carefully until you need it during your retirement years.


In the unfortunate event that the policyholder takes their own life within the initial 12 months of starting or renewing the policy, the beneficiaries will receive the Fund Value as on that particular date.

Should one consider investing in a retirement plan?

1. Financial Security: Retirement planning is crucial for attaining financial security.

2. Careful Investment Planning: Investments should be planned carefully to ensure their returns can replace your regular income.

4. Debt-Free Life: Proper retirement planning helps in leading a life without any debts.

By following these steps, individuals can secure their future and enjoy a financially stable retired life.

Documents Required

To avail the benefits of SBI Life Retire Smart insurance plan, individuals need to complete and submit an application form with necessary medical records and KYC documents. Additionally, depending on the chosen sum assured amount and age, income proof may be required during the insurance process.

Sbi Life Retire Smart: Nomination Provisions Explained

This policy enables individuals to make nominations under section 39 of the Insurance Act, 1938, in accordance with any amendments made over time.

Are there any provisions for assignment in the SBI Life Retire Smart plan?

Ans: This plan does not allow the policyholder to appoint any ‘Assignee’ under the plan options.

Are the premium allocation charges under SBI Life Retire Smart plan favorable or unfavorable?

The premiums paid will have premium allocation charges deducted from them before the units are allocated. The charges vary depending on the policy year: 5.75% for the first year, 4.25% for the second year, 4.00% for years three to ten, and 2.50% from the eleventh year onwards.

Are the policy administration charges for SBI Life Retire Smart plan reasonable or excessive?

The charges for policy administration will be applied as per the details mentioned below and will be deducted throughout the entire policy duration. The cost of policy administration will be recovered by redeeming units at the prevailing unit price on the first day of each month.

During the initial five years of the policy, there will be a monthly charge of Rs 45 for policy administration. From the sixth year onwards, this charge will increase to Rs 70 per month.

The insurer will provide all the savings according to the insurance plan approved by IRDAI. Please be aware that the quotes displayed are from our partners.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

Pension plans articles

1. Transfer fee: Some providers may charge a fee when you transfer your pension savings to another scheme.

2. Exit fee: Certain schemes might levy an exit fee when you move your funds away from their platform.

3. Administration fee: There could be ongoing administration fees associated with managing your pension account with certain providers.

5. Annual maintenance charges: Some schemes may have annual maintenance charges that are deducted from the value of your pension fund.

Should one consider withdrawing from their retirement account?

It is generally advisable to refrain from making an early withdrawal from a 401(k) solely due to concerns about short-term financial losses. Additionally, it is not recommended to cash out your 401(k) in order to pay off debts or purchase a car, according to Harding. He suggests that early withdrawals should be reserved for genuine emergencies only.

List of considerations:

1. Avoid making premature 401(k) withdrawals based on short-term market fluctuations.

2. Do not utilize the funds from your 401(k) to settle debts or make non-essential purchases like cars.

3. Reserve early withdrawals for true emergency situations.

What is the top SBI retirement plan?

SBI Life-Saral Pension is a retirement plan offered by SBI Life Insurance. It is designed to provide individuals with a regular income and return on their investment after they retire. This plan works on the basis of a single premium, meaning you make one lump-sum payment at the beginning.

Once you have invested in SBI Life-Saral Pension, it guarantees you a fixed income for the rest of your life. The amount of this income depends on various factors such as your age, gender, and the premium amount paid. This annuity plan ensures that you receive financial stability during your retirement years.

The consequences of retiring at 55

1. If you retire at age 55, Social Security retirement benefits may not be available immediately.

2. Withdrawing money from retirement accounts before a certain age can result in an early withdrawal penalty.

3. Medicare coverage typically starts at the age of 65 in India; therefore, additional health insurance or alternate plans might be necessary during the gap period.

Is it possible to retire at the age of 60?

Retiring at the age of 60 is considered to be one year earlier than the average retirement age. While many Americans may find it challenging to retire at this age, it is not an unattainable goal with proper planning and saving strategies. Early retirement can be achieved by individuals who carefully plan their finances and make appropriate investments.

To embark on a successful early retirement journey, seeking guidance from a financial advisor is highly recommended. A professional advisor can assist in creating a personalized financial plan tailored to your specific needs and goals for retirement. They will take into account factors such as your current income, expenses, savings, and investment options available to you.