ICICI Systematic Retirement Solution – Too good to be true !

POSTED BY dineshdileep ON January 18, 2014 10:10 pm COMMENTS (4)


Firstly, I am a researcher in engineering and don’t know anything about investments or any such financial stuff. So, please refrain from too much financial jargon. Yesterday, I went to my bank branch and was trying to take a tax saver FD. The manager there then told me about ICICI systematic retirement solution. In the numerical example he illustrated, if I make a investment of one lac rupees per annum for five years and then lock the amount for another 5 years more, then from the eleventh year onwards, the bank will pay me 2.6Lacs per annum for my life time.

He told me that it is a combination of icici wealth builder plan and icici premium annuity plan. I will receiver the amount as long as I hold the principal amount with the bank. The plan seemed too good to be true. Can somebody explain  if it is true at all?

4 replies on this article “ICICI Systematic Retirement Solution – Too good to be true !”

  1. AJ PlanRupee says:


    Ashal is right when he says that ‘ask Bank Manager to provide the same on stamp paper’ … while this you can ask, but it may not be practical.

    Take a simple way out, ask him to e-mail ‘ALL CHARGES’ in the policy. This is mandatory by regulator IRDA to be disclosed in the policy schedule. One look at the charges and you would know that this ‘scheme’ is too good to be true.

    : – )
    The equation below is crude BUT (considering your engineering brain), you will get a good idea about expected returns.
    [Policy return = Market expected return – Annual Policy Charges].

    Hope this helps.

  2. ashalanshu says:

    Dear Dinesh, can you earn guaranteed return from stock market? if your answer is yes, whatever your manager has told you is truth. Else you know well.



  3. dineshdileep says:

    Hi, Thanks for the reply!. Could you please explain the hidden things in this schemes. I mean, I suppose the manage should have explained the ideal situation where everything goes good for me. In your opinion, what are those things in this scheme which the manager might not have told me so as to lure me into this scheme?

  4. ashalanshu says:

    Dear Dinesh, your common sense is right. It’s not at all true. Just ask your branch manager to provide all the things on a stamp paper. He ‘ll not do so.

    For your information, the policy is a market linked product and your money ‘ll be invested in shares and bonds and being market linked, no guarantee of return can be there.



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