Listen to this article
Is the Bharti AXA Life Saral Pension Plan a safe retirement solution — or just another low-return insurance product in disguise?
Is the Bharti AXA Life Saral Pension Plan a dependable retirement shield — or a slow wealth destroyer?
Will the Bharti AXA Life Saral Pension Plan truly protect your retirement lifestyle, or just cover basic expenses?
It also offers insights into how you can structure your retirement corpus to generate inflation-adjusted income and preserve your purchasing power over time.
Table of Contents
What is the Bharti AXA Life Saral Pension?
What are the features of the Bharti AXA Life Saral Pension?
Who is eligible for the Bharti AXA Life Saral Pension?
What are the annuity options in the Bharti AXA Life Saral Pension?
Free Look Period of the Bharti AXA Life Saral Pension
Surrendering the Bharti AXA Life Saral Pension
What are the advantages of the Bharti AXA Life Saral Pension?
What are the disadvantages of the Bharti AXA Life Saral Pension?
Research Methodology of Bharti AXA Life Saral Pension
Benefit Illustration – Bharti AXA Life Saral Pension
Bharti AXA Life Saral Pension Plan Vs. Other Investments
Bharti AXA Life Saral Pension Plan Vs. Fixed Income Investments
Bharti AXA Life Saral Pension Plan Vs. Inflation Adjusted Income
Final Verdict on the Bharti AXA Life Saral Pension
What is the Bharti AXA Life Saral Pension?
Bharti AXA Life Saral Pension is a Single Premium Non-Linked Non-Participating Individual Immediate Annuity Plan.
The plan ensures that you live life on your own terms – even after your retirement. With its simple and easy-to-understand features and standardised options, this plan is an immediate annuity plan for retirees.
What are the features of the Bharti AXA Life Saral Pension?
- Guaranteed Lifetime Income: Make a one-time investment and receive a fixed, guaranteed annuity payout for the rest of your life.
- Joint Life Option: Continue the guaranteed annuity income to your spouse after your lifetime, ensuring financial continuity.
- Flexible Payout Frequency: Choose to receive annuity payments on a monthly, quarterly, half-yearly, or annual basis, depending on your cash flow requirements.
- Return of Purchase Price: Upon the death of the annuitant (or the last surviving annuitant under the joint life option), 100% of the purchase price is returned to the nominee.
- Single Premium Structure: A one-time premium payment is sufficient to initiate the annuity, after which regular payouts commence as per the selected option.
Who is eligible for the Bharti AXA Life Saral Pension?
| Parameter | Eligibility Criteria | |
| Min Age at Entry | 40 years | |
| Maximum Age at Entry | 80 years | |
| Minimum Annuity Amount | Monthly | Rs. 1,000 |
| Quarterly | Rs. 3,000 | |
| Half-Yearly | Rs. 6,000 | |
| Yearly | Rs. 12,000 | |
| Maximum Annuity Amount | No Limit | |
| Minimum & Maximum Purchase Price | Annuity Option 1: Rs.2,33,554Annuity Option 2: Rs.2,45,902 | As per the Annuity Amount, Annuitant Age and mode of Annuity payment chosen. |
| Policy Term | This is a whole life product | |
| Premium Payment Term | Only one mode of premium payment permitted under the policy – Single Premium, which is also the Purchase Price | |
| Modes of Annuity Payment | Monthly, Quarterly, Half-Yearly, Yearly | |
What are the annuity options in the Bharti AXA Life Saral Pension?
Death benefit
Upon the death of the Annuitant, the Death Benefit will be payable immediately on death.
In case of a single Life annuity: 100% of the purchase price shall be payable to the nominee or legal heir on death of the annuitant, and the annuity payments shall cease immediately.
In case of a joint life annuity, after the death of the primary annuitant: If the spouse is surviving, the spouse continues to receive the same amount of annuity for life till his/her death. Subsequently, on the death of the spouse, 100% Purchase Price shall be payable to the nominee / legal heirs.
However, if the spouse has pre-deceased the annuitant, then on the death of the annuitant, the Purchase price shall be payable to the nominee /legal heirs.
Survival Benefit
Annuity is payable during the survival of the annuitant(s), as per the chosen mode of annuity payment.
Option 1 – Life Annuity with Return of 100% of Purchase price (ROP) – Under this option, the annuity is paid for the life of the annuitant.
Option 2 – Joint Life Last Survivor Annuity with Return of 100% of Purchase Price (ROP) on death of the last survivor – In this case, the annuity is first paid to the primary annuitant for life.
After the death of the primary annuitant, if the spouse is surviving, the spouse continues to receive the same amount of annuity for life till his/her death.
Maturity benefit
There is no Maturity Benefit under the product.
Free Look Period of the Bharti AXA Life Saral Pension
If the Bharti AXA Life Saral Pension Plan Policyholder disagrees with any of the terms and conditions of the Policy, there is an option to return the original Policy along with a letter stating reason/s within 30 days of receipt of the Policy Document.
Surrendering the Bharti AXA Life Saral Pension
Surrender is only applicable in case of diagnosis of a critical illness (applicable illnesses specified in the Policy Document) for the annuitant or the spouse or any of the children of the annuitant, any time after six months from the date of commencement of the Bharti AXA Life Saral Pension Plan policy, based on the documents produced to the satisfaction of the medical examiner of the Insurer.
On approval of surrender, 95% of the Purchase Price shall be paid to the annuitant, subject to deduction of outstanding loan amount and loan interest, if any.
What are the advantages of the Bharti AXA Life Saral Pension?
- Loan Facility: A loan can be availed under the Bharti AXA Life Saral Pension Plan policy after completion of six months from the date of commencement, subject to applicable terms and conditions.
- Purchase Price Incentive: Higher purchase amounts qualify for an incremental incentive, where a specified percentage is added to the annuity rate, thereby enhancing the annuity payout.
What are the disadvantages of the Bharti AXA Life Saral Pension?
- Annuity payments are fully taxable.
- The annuity is not adjusted for inflation.
- Limited annuity options to choose from.
- The plan can be surrendered only under specified conditions.
Research Methodology of Bharti AXA Life Saral Pension
The Bharti AXA Life Saral Pension Plan is a single-premium annuity product structured to provide regular income payouts.
It is positioned as a retirement solution for senior citizens seeking guaranteed lifetime income in exchange for deploying their accumulated corpus. However, a return analysis is critical before allocating retirement funds to such a product.
Benefit Illustration – Bharti AXA Life Saral Pension
Let us evaluate the Internal Rate of Return (IRR) based on the illustration provided in the Bharti AXA Life Saral Pension Plan policy brochure.
Assume a 60-year-old male invests ₹8 lakhs under Option 1: Life Annuity with Return of 100% Purchase Price (ROP). The plan pays an annual annuity of ₹43,570.
Upon the annuitant’s demise, the original ₹8 lakh purchase price is refunded to the nominee.
If we assume a life expectancy of 85 years (i.e., 25 years of annuity income), the IRR for this cash flow works out to approximately 5.34% per annum as per the Bharti AXA Life Saral Pension Plan maturity calculator.
| Male | 60 years |
| Purchase Price | ₹ 8 Lakhs |
| Life Expectancy | 85 years |
| Annuity (per annum) | ₹ 43,570 |
| Age | Option 1: Life Annuity with Return of 100% of Purchase Price (ROP) |
| 60 | -8,00,000 |
| 61 | 43,570 |
| 62 | 43,570 |
| 63 | 43,570 |
| 64 | 43,570 |
| 65 | 43,570 |
| 66 | 43,570 |
| 67 | 43,570 |
| 68 | 43,570 |
| 69 | 43,570 |
| 70 | 43,570 |
| 71 | 43,570 |
| 72 | 43,570 |
| 73 | 43,570 |
| 74 | 43,570 |
| 75 | 43,570 |
| 76 | 43,570 |
| 77 | 43,570 |
| 78 | 43,570 |
| 79 | 43,570 |
| 80 | 43,570 |
| 81 | 43,570 |
| 82 | 43,570 |
| 83 | 43,570 |
| 84 | 43,570 |
| 85 | 8,00,000 |
| IRR | 5.34% |
From a retirement planning standpoint, this return is modest. More importantly, the annuity payout is fixed for life and does not provide any escalation to offset inflation.
Over a 20–25-year retirement horizon, inflation significantly erodes purchasing power, particularly given rising healthcare and living expenses. In such a scenario, a level annuity structure can lead to a steady decline in real income.
A product offering a step-up or inflation-linked payout would better align with long-term retirement income sustainability.
Further, annuity products inherently lack liquidity. Once the purchase price is deployed, the corpus is effectively locked in. Access is highly restricted and generally limited to specific contingencies or payable to nominees upon death. This rigidity reduces financial flexibility during retirement.
Considering the relatively low IRR, absence of inflation protection, and limited liquidity, the Bharti AXA Life Saral Pension Plan may not be an efficient vehicle for comprehensive retirement income planning.
Bharti AXA Life Saral Pension Plan Vs. Other Investments
The return analysis indicates that the Bharti AXA Life Saral Pension Plan may not adequately support long-term retirement expenses. It is therefore prudent to examine alternative avenues that offer superior return potential along with better liquidity and flexibility.
Bharti AXA Life Saral Pension Plan Vs. Fixed Income Investments
As the term implies, fixed-income instruments provide predictable and regular income, similar to annuity products—but often at more competitive rates. Some practical alternatives include:
| Alternate Investment option | Interest Rate |
| Senior Citizen Savings Schemes (SCSS) | 8.20% |
| Bank FD | 7% – 8% |
| RBI Floating Rate Bonds | 8.05% (Floating) |
Senior Citizen Savings Scheme (SCSS): Currently offers 8.20% per annum.
Bank Fixed Deposits (FDs): Typically yield between 7% and 8%, depending on tenure and institution.
RBI Floating Rate Savings Bonds: Presently offer around 8.05%, with interest linked to prevailing rates.
While these options deliver stable cash flows, they do not inherently solve the problem of inflation. To generate income that keeps pace with rising costs, a balanced allocation between equity and debt becomes critical.
Bharti AXA Life Saral Pension Plan Vs. Inflation Adjusted Income
Let us reconsider the earlier example of a retiree with a ₹8 lakh corpus and an initial annual withdrawal of ₹43,570 (equivalent to the annuity income under the Saral Pension Plan).
Portfolio Strategy: 60% Equity and 40% Debt
₹4.8 lakhs allocated to equity to capture long-term growth.
₹3.2 lakhs invested in debt instruments to fund near-term withdrawals.
Assumed returns: 12% per annum from equity and 6% per annum from debt.
Inflation-Adjusted Withdrawal Framework
Initial annual withdrawal: ₹43,570.
Withdrawals increased by 6% every five years to partially offset inflation.
Systematic Rebalancing Approach
Every five years, gains from equity are transferred to debt to replenish the income bucket.
By age 71, the remaining equity exposure is gradually shifted toward debt to reduce volatility and enhance capital stability.
| Age | Equity Portion | Shift from Equity to Debt | Debt Portion | ||||
| Opening Balance | Yearly withdrawal | Closing Balance | Opening Balance | Yearly withdrawal | Closing Balance | ||
| 61 | 4,80,000 | – | 5,37,600 | – | 3,20,000 | 43,570 | 2,93,016 |
| 62 | 5,37,600 | – | 6,02,112 | – | 2,93,016 | 43,570 | 2,64,413 |
| 63 | 6,02,112 | – | 6,74,365 | – | 2,64,413 | 43,570 | 2,34,093 |
| 64 | 6,74,365 | – | 7,55,289 | – | 2,34,093 | 43,570 | 2,01,954 |
| 65 | 7,55,289 | – | 8,45,924 | – | 2,01,954 | 43,570 | 1,67,888 |
| 66 | 8,45,924 | 3,00,000 | 6,11,435 | 3,00,000 | 4,67,888 | 46,184 | 4,47,006 |
| 67 | 6,11,435 | – | 6,84,807 | – | 4,47,006 | 46,184 | 4,24,871 |
| 68 | 6,84,807 | – | 7,66,984 | – | 4,24,871 | 46,184 | 4,01,408 |
| 69 | 7,66,984 | – | 8,59,022 | – | 4,01,408 | 46,184 | 3,76,537 |
| 70 | 8,59,022 | – | 9,62,105 | – | 3,76,537 | 46,184 | 3,50,174 |
| 71 | 9,62,105 | 9,62,105 | -0 | 9,62,105 | 13,12,278 | 48,955 | 13,39,123 |
| 72 | -0 | – | -0 | – | 13,39,123 | 48,955 | 13,67,577 |
| 73 | -0 | – | -0 | – | 13,67,577 | 48,955 | 13,97,739 |
| 74 | -0 | – | -0 | – | 13,97,739 | 48,955 | 14,29,711 |
| 75 | -0 | – | -0 | – | 14,29,711 | 48,955 | 14,63,601 |
| 76 | -0 | -0 | 0 | -0 | 14,63,601 | 51,893 | 14,96,411 |
| 77 | 0 | – | 0 | – | 14,96,411 | 51,893 | 15,31,190 |
| 78 | 0 | – | 0 | – | 15,31,190 | 51,893 | 15,68,055 |
| 79 | 0 | – | 0 | – | 15,68,055 | 51,893 | 16,07,132 |
| 80 | 16,07,132 | 51,893 | 16,48,554 | ||||
| 81 | 16,48,554 | 55,006 | 16,89,161 | ||||
| 82 | 16,89,161 | 55,006 | 17,32,204 | ||||
| 83 | 17,32,204 | 55,006 | 17,77,830 | ||||
| 84 | 17,77,830 | 55,006 | 18,26,193 | ||||
| 85 | 18,26,193 | 55,006 | 18,77,458 | ||||
Under this structure, by age 85, the retiree would still have approximately ₹18 lakhs remaining—more than twice the original corpus. This significantly outperforms the annuity-based outcome while also preserving liquidity and ownership of the corpus throughout retirement.
Importantly, the 60:40 allocation and the timing of rebalancing are not rigid. They can be customised based on individual risk appetite, health profile, income needs, and legacy goals.
This diversified strategy illustrates a more efficient deployment of retirement capital—offering inflation-adjusted income, capital growth potential, and liquidity—advantages that a fixed annuity product like the Bharti AXA Life Saral Pension Plan does not provide.
Final Verdict on the Bharti AXA Life Saral Pension
The Bharti AXA Life Saral Pension Plan provides a predictable income, but the absence of flexibility is a material limitation. Once the purchase price is deployed, the corpus is effectively locked in, restricting access during medical emergencies or other unforeseen expenses.
Such rigidity does not align well with the evolving financial demands of retirement.
A dependable post-retirement income stream is undeniably important to sustain lifestyle expenses and contingencies. However, a fixed annuity structure fails to address inflation risk and it also has a high agent commission.
Over time, rising living and healthcare costs erode purchasing power, while the locked-in corpus limits strategic adjustments.
The combination of fixed payouts and restricted liquidity makes this structure suboptimal for comprehensive retirement planning.
A diversified portfolio approach, supported by disciplined rebalancing, presents a more efficient alternative. By allocating assets across equity and debt, retirees can pursue growth to counter inflation while maintaining stability for regular withdrawals.
This framework can be tailored to individual risk tolerance, income requirements, and legacy objectives—ensuring that the corpus remains sustainable throughout retirement and potentially beyond.
Retirement planning is a critical pillar of long-term financial security, yet standardised annuity products often fail to accommodate the varied needs of retirees.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
For a structured and goal-oriented strategy, consulting a Certified Financial Planner can help design a customised asset allocation model that aligns with your lifestyle expectations and long-term financial objectives.
Leave a Reply