The data showed that Pension Unit Linked Insurance Plans (ULIPs) recorded nearly 10-fold growth in FY26 compared to the previous financial year, driven by rising retirement awareness, increasing life expectancy and demand for market-linked retirement products.
Investors aged above 45 accounted for 40% of Pension ULIP adoption, while those in the 36-45 age bracket contributed 35%, indicating growing focus on retirement planning among pre-retirees and mid-career professionals. The 26-35 age group contributed 23% of purchases.
In contrast, millennials aged 26-35 accounted for nearly half of all Guaranteed Return Plan (GRP) purchases. More than 85% of GRP buyers belonged to the 26-45 age bracket, reflecting demand among salaried professionals and young families seeking predictable returns and long-term savings.
Policybazaar said the trends indicate that investors are separating wealth-growth products from wealth-protection products within their financial planning strategies.
The company’s data also highlighted growing participation from non-metro markets. Metropolitan cities accounted for 60% of long-term investment adoption across both Pension ULIPs and GRPs, while Tier-2 cities contributed 30%, suggesting increasing awareness of retirement planning beyond major urban centres.
Monthly premium payments remained the preferred mode across both product categories, indicating a shift toward systematic and salary-linked investing habits among consumers.
The data showed a significant gender gap in long-term investment participation, with male investors accounting for 90% of buyers across both categories, while women accounted for 10%.
Among high-net-worth individuals, average investments in Pension ULIPs and GRPs ranged between ₹90,000 and ₹1 lakh annually. Non-resident Indian investors, meanwhile, invested an average of ₹2.79 lakh in Pension ULIPs and over ₹2 lakh annually in GRPs.
Sameep Singh, Business Head-Savings at Policybazaar, said investors are looking for a combination of wealth accumulation and financial certainty within the same investment journey, while participation from Tier-2 and Tier-3 cities continues to rise.
