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Strengthen your financial resilience in an aging world

July 10, 2025

 

Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender/withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of fifth year.

There was a time when turning sixty meant slowing down. Today, it often means starting over i.e. second innings, encore careers, or finally ticking off dreams long postponed. Indians are living longer than ever. According to World Health Organisation, life expectancy at birth (years) has improved by 4.11 years from 63.2 years in 2000 to 67.3 years in 2021*. But that gift of longevity comes with a quiet challenge: how do you make your money last as long as you do?

The rise in life expectancy has outpaced how most families plan their finances. From covering rising healthcare costs to ensuring income well into the 80s or 90s, old age isn’t cheap. And, it certainly isn’t short. On World Population Day, as the world reflects on aging societies, it’s time we rethink how we prepare for the golden years. Because retirement today is not an end, but a long, unpredictable phase that demands its own financial game plan.Building that plan starts earlier than you think.

Supporting financial resilience during earning years

For many Indians in their 30s, 40s, or even 50s, the idea of retirement still feels distant. But wealth doesn’t grow overnight, and neither does financial security. ULIPs (Unit Linked Insurance Plans) play a quiet and powerful role here.

The workings of a ULIP is simple. A part of your premium goes towards life cover, protecting your loved ones if something were to happen to you. The other part is invested in market-linked funds that grow your wealth over time. It’s insurance and investment working together, without needing to choose one over the other.

What makes ULIPs especially useful for retirement planning is their flexibility. You can switch between equity, debt and hybrid funds based on your life stage and risk appetite. Planning to retire early? Choose more aggressive growth funds now. Nearing retirement? Shift towards debt for safety. Investment returns are as per the underlying asset class chosen

Some ULIPs even offer loyalty additions or wealth boosters. These are features that add to your corpus over time. And since these plans often run for 10–20 years, they encourage the discipline to stay invested through market cycles. With revamped ULIP norms, costs are low too and this means eking out that much extra for the policyholder.

The goal isn't just to build a fund. Actually, the goal is to build confidence. A well-performing ULIP can create a meaningful cushion, giving you the power to enter retirement not with worry, but with options.Because when you're earning, every rupee invested wisely today becomes a pillar of strength for tomorrow.

Retirement income

Investments can protect your dreams. However, dreams can change and so can your financial stability. That’s the real fear for many retirees: not just the cost of growing old, but the uncertainty of how long they’ll need to stretch their savings. What if I outlive my savings is a common fear. This is what financial planners call longevity risk i.e. the risk of outliving your money.

But that doesn’t need to be your reality.

Retirement income products like annuities step in to solve this problem. Think of them as financial seatbelts for your post-retirement journey. Annuities convert your retirement savings into a guaranteed income stream. You pay a lump sum once, and in return, receive regular payouts (monthly, quarterly, or yearly) for life, or a fixed period.There are also deferred annuities, which start payments a few years after you retire, which is an ideal option for those who want to build a safety layer for their later years. Some even offer return of purchase price, so your family isn’t left behind.

Unlike market investments that fluctuate, annuity-based plans bring stability. There’s no guessing. No worrying about market dips. Just the quiet comfort of knowing your next month’s income is already taken care of.Its almost like a salary, without being a ‘salary’!

Combined with the wealth created through ULIPs, guaranteed income tools such as annuities round out your retirement plan. They convert growth into stability, aspirations into assurance. Living longer shouldn't mean worrying longer. It should mean living fully, securely, and with dignity.

Takeaways

Securing your golden years isn’t just about how much you save. It’s about how smartly you plan.Here’s a simple path to building real financial resilience as you age.

1. Start early with a ULIP during your earning years. Let it quietly grow while also protecting your family through life cover.

2. Stay invested with disciplineand use fund-switching options to shift from growth to safety as you approach retirement.

3. Supplement your ULIP corpus with a guaranteed income productlike an annuity plan that offers steady payouts without market-linked stress.

4. Think long-term. With life expectancy rising, plan not just for 10 or 15 years post-retirement, but 25–30 years of active and passive living.

Your later years deserve more than hope. They deserve security. With the right blend of growth and income tools, you won’t just prepare for retirement; you’ll design a life where every phase feels supported. Truth is retiring doesn’t mean retreating. It means living differently. With the right financial plan, it can be the most empowered chapter of all.

Start today, so your future self can live with freedom, not fear.

Source

*https://data.who.int/countries/356

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ARN: ED/07/25/25254

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Life Insurance Coverage is available in ULIP product. For more details on risk factors, associated terms and conditions and exclusions please read sales brochure carefully <or contact your relationship manager> before concluding a sale. Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. HDFC Life Insurance Company Limited is only the name of the Insurance Company, HDFC Life is only the name of the brand. The name of the company, name of the brand and name of the contract does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospect