According to Tarun Chugh, MD and CEO, Bajaj Allianz, the retirement fund corpus in India in FY20 was at Rs 29 lakh crore and was getting annuitized at 1.25%, which worked out to Rs 36,000 crore.Bajaj Allianz Life Insurance on Wednesday launched an insurance plan offering a guaranteed regular deferred annuity during the post-retirement life.
With life expectancy in the country growing to 78 years, there is fear about people outliving their savings. Besides, India suffers from the highest retirement fund gap and there is no social security, so the company believes there is need for such pension products.
According to Tarun Chugh, MD and CEO, Bajaj Allianz, the retirement fund corpus in India in FY20 was at Rs 29 lakh crore and was getting annuitized at 1.25%, which worked out to Rs 36,000 crore. This was estimated to go up to a retirement corpus of `58 lakh crore by 2025 and 1.5% of this annuitized worked out to a Rs 87,000-crore opportunity.
Chugh said while it had been a tough year for the life insurance sector, Bajaj Allianz Life did not de-grow in any of the quarters because of innovations and use of technology to e-meet and close policies and could end up the with a 15% higher top line.
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