ICICI Prudential Life Insurance has introduced a pension product, ‘ICICI Pru Signature Pension’, designed to help individuals build a robust retirement fund.

This market-linked pension plan offers a tax-efficient approach to systematically accumulate savings, with the added benefit of up to 60% tax-free lump sum withdrawals at maturity.

As the first product of its kind in India to combine capital safety with partial liquidity options, it also includes complimentary health check-ups, making it a comprehensive choice for securing a financially independent retirement.

Announcing the launch, Amit Palta, Chief Distribution Officer, ICICI Prudential Life Insurance said, “We are delighted to offer ICICI Pru Signature Pension, a market linked product which enables customers to participate in the India growth story to build their retirement corpus.”

ICICI Pru Pension India Growth Fund and ICICI Pru Pension Balanced Fund

This product allows customers to have a 100% exposure to equity besides offering unlimited free switches between equity, debt and balanced funds to maximise their returns. With this product we are also offering two new funds – ICICI Pru Pension India Growth Fund and ICICI Pru Pension Balanced Fund.

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Notably, the feature of ‘advancing’ or ‘postponing’ the income start date can enable the Financial Independence Retire Early (FIRE) generation to achieve their early retirement goals. Whereas customers who wish to start receiving income on retiring can choose to postpone the income start date.

Tax-free withdrawal of up to 60% of the accumulated savings allowed

Importantly, the product allows customers to make a tax-free withdrawal of up to 60% of the accumulated savings at the end of the policy tenure with the balance required to be deployed to purchase an annuity to receive guaranteed lifelong income.”

He added, “Opting for the waiver of premium add-on benefit will insulate the retirement plan from being disrupted due to a critical illness or permanent disability due to accident. The partial withdrawal feature can aid in overcoming liquidity requirements without disturbing the savings plan. Also, the top-up feature allows customers to make additional investments to boost their retirement savings.”