According to Tarun Chugh, MD and CEO, Bajaj Allianz, the pension fund corpus in India in FY20 was at Rs 29 lakh crore and was annuity at 1.25%, which corresponded to Rs 36,000 crore.
Bajaj Allianz Life Insurance on Wednesday launched an insurance plan offering a guaranteed regular deferred annuity for life after retirement.
With life expectancy in the country reaching 78 years, there are fears that people will outlive their savings. In addition, India suffers from the highest pension fund deficit and there is no social security, so the company believes such pension products are necessary.
According to Tarun Chugh, MD and CEO, Bajaj Allianz, the pension fund corpus in India in FY20 was at Rs 29 lakh crore and was annuity at 1.25%, which corresponded to Rs 36,000 crore. It was estimated that this went up to a retirement corpus of `58 lakh crore by 2025 and 1.5% of that annuity resulted in an opportunity of Rs 87,000 crore. Chugh said that although it has been a tough year for the life insurance industry, Bajaj Allianz Life has not stalled in any of the quarters due to innovations and the use of technology to respond online and close the fonts and could end up with a top 15% top line.
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