Should ‘SBI Life – Retire Smart’ be avoided?

POSTED BY Dr.Sachin ON March 29, 2014 9:14 am COMMENTS (20)

Just got a mail from SBI Life people giving an advt about their  SBI Life – Retire Smart plan.


Should such linked pension plans to be avoided.

[Myself: 28 years, planning my retirement by 55, have taken term cover. Have started SIPs and PPF]

20 replies on this article “Should ‘SBI Life – Retire Smart’ be avoided?”

  1. Venkatesh Ramanujam says:

    I am 57 years retired Naval Officer. Advise me on a good retirement plan with monthly income.

    1. Jagoinvestor says:

      You can take a immediate Annuity plan .. there are many companies which provide it like LIC , ICICI

  2. Mukesh Patel says:

    I am 63 can Retire Smart plan is good for me I need to invest 500K per year and i need at least 250k 0er year
    Also I need to know about senior citizen fix deposit is better than this?

    1. Jagoinvestor says:

      I don’t think you should go with any policy.. You can either taken LIC Pension plan or be with FD for sometime to decide where to invest

  3. Alex says:

    Can anyone suggest how to surrender the SBI retire smart plan with no surrender charges. I am paying for this plan since 3 years.

    1. You need to go to the branch to surrender ..

  4. Madhu says:

    Recently i visited SBI branch and they introduced me to SBI Life isurance agent . The agent told me about a plan and I am planning to invest in SBI Life Retire Smart plan .. with Half yearly payment of 1 Lakh for 5 years payment term.

    The Agent told me that i will be getting pension from 6th year onwards of Rs.10,000 per month .

    I am new to this , can any body advise … Please help…. How reliable is SBI Life and this policy ?

    1. Hi Madhu

      Its suggested that you dont take that policy.

      1. Alex. says:

        Hi Manish, I have taken this policy since 3 years and I am paying a premium of 3.6 Lakhs per annum. Could you please advise how to surrender this plan or exit from this plan. Your advise will be great.

        1. You need to visit the branch for this. Give a letter for surrender to the branch!

  5. Sreerangan says:

    Dear Sir,

    What is the minimum premium tenure can I opt under sbi life retire smart plan?

    I am 41 yrs old. I wish to join 5 yr premium tenure and invest 2 lacs pa and start pension at 55 yrs. Is this covered under this plan?

    1. Hi Sreerangan

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that


  6. NIRAV says:

    Hello sir,
    I am 39 yrs old. Which is the best retirement policy?
    I need to get regular income for my retirement after 60 yrs.
    Should I invest SBI retire smart policy or should I go to MF sip?
    I can invest 100000/- per yrs. for next 10 to 15 yrs.

  7. ashalanshu says:

    Dear Sachin, first of all, please pin point a figure. How much corpus you need in your retirement. Once corpus figure is there, decide which instrument you should invest in to reach your target.

    Please visit freefincal . com to test few calculators there.



  8. ashalanshu says:

    Dear Dr. Sachin, you mean to say, you were looking for retirement policy for tax saving and not for retirement?



    1. Dr.Sachin says:

      Thanks Ashalanshu
      //Ashalanshu: As per current tax rules this annuity is taxable.// This is new info for me.

      Looking for retirement plan for retirement only, not for tax saving purpose

  9. ashalanshu says:

    Dear Dr. Sachin, I did not said that opting a retirement oriented policy is bad. Let’s discuss the thing in detail. Let’s assume, you purchased a pension policy today and start investing money into it. Now at the time of policy maturity (your chosen retirement age in this policy). You can not withdraw all the fund for your personal choice. At best you can withdraw only 1/3rd part as tax free. Remaining part should be used to purchase annuity (annuity means pension). Now the real thing start from here. As per current tax rules this annuity is taxable. Now once opted, there is no control from you on annuity. You can not surrender the plan to come out. The annuity can not be increased or decreased as per your choice. Due to inflation, the offered annuity may not be enough for your requirement.

    Now you should decide.



    1. Dr.Sachin says:

      Thanks Ashal.
      these are all new info for me. The tax part and it canot be withdrwn as a lump sum . Thanks.
      So if v need to avoid tax, then PPF& tax saving mutual funds are the best options i guess.

  10. Dr.Sachin says:

    I need money for my retirement.
    But is it bad going for a retirement oriented insurance policy?

  11. ashalanshu says:

    Dear Dr. Sachin, what’s important to you having money for your retirement or having a retirement oriented insurance policy?



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