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Is the HDFC Life Click 2 Retire Plan the ultimate solution for a worry-free retirement, or should you explore other options before committing?
Does HDFC Life Click 2 Retire Plan strike the right balance between growth and security, or are there trade-offs to consider?
Is HDFC Life Click 2 Retire Plan the retirement plan you’ve been looking for, or does it fall short of expectations?
In this review, we take a closer look at the plan’s features, benefits, and drawbacks to help you decide whether it’s the right fit for your retirement strategy.
Table of Contents
What is the HDFC Life Click 2 Retire?
What are the features of the HDFC Life Click 2 Retire?
Who is eligible for the HDFC Life Click 2 Retire?
What are the benefits of the HDFC Life Click 2 Retire?
What are the fund options in the HDFC Life Click 2 Retire?
What are the charges in the HDFC Life Click 2 Retire?
Grace Period, Discontinuance and Revival of HDFC Life Click 2 Retire
Free Look Period for HDFC Life Click 2 Retire
Surrendering HDFC Life Click 2 Retire
What are the advantages of the HDFC Life Click 2 Retire?
What are the disadvantages of the HDFC Life Click 2 Retire?
Research Methodology of HDFC Life click 2 Retire
Benefit Illustration – IRR Analysis of HDFC Life Click 2 Retire
HDFC Life Click 2 Retire Vs. Other Investments
HDFC Life Click 2 Retire Vs. Pure-term + PPF / ELSS
Final Verdict on HDFC Life Click 2 Retire Plan
What is the HDFC Life Click 2 Retire?
HDFC Click 2 Retire Plan is a Unit-Linked Non-Participating Individual Pension Savings Plan.
You can choose either a single pay or premium paying term of 8, 10 or 15 years with a policy term of 10 to 35 years (except 11 to 14 years) as per your need to enjoy complete benefits of the regular income post-retirement.
What are the features of the HDFC Life Click 2 Retire?
- You can start investing in this plan as early as age 18.
- The plan offers a low vesting (maturity) age starting from 45 years.
- Flexibility to choose between Limited Pay and Single Pay options within a single product.
- In case of the policyholder’s death, the nominee receives the higher of the fund value or 105% of the total premiums paid till date.
- Enjoy the dual benefit of a guaranteed vesting amount along with a potential upside from market-linked growth.
- Minimal charges: Only Fund Management Charge (FMC) and Investment Guarantee Charge apply — there are no premium allocation charges, no policy administration charges, and no exit charges.
Who is eligible for the HDFC Life Click 2 Retire?
| Eligibility Criteria | Minimum | Maximum |
| Entry Age | 18 years | 65 years |
| Vesting Age | 45 years | 75 years |
| Premium Payment Term & Policy term | Premium Payment Term | Policy term |
| Single Pay | 10, 15 to 35 years | |
| 8 Pay | ||
| 10 Pay | ||
| 15 Pay | 15 to 35 years | |
| Premium amount | Annual – 24000 Half Yearly – 12000 Quarterly – 6000 Monthly – 2000 Single Pay – 50,000 |
No limit |
What are the benefits of the HDFC Life Click 2 Retire?
Vesting benefit
The policy vests at the end of the policy term, and the Maturity (Vesting) Benefit will be the higher of the following:
- Fund Value or
- Assured Vesting Benefit
Utilization of Policy Proceeds (Vesting Benefit)
On the date of vesting, the policyholder shall be allowed:
- To commute up to 60% and utilize the balance amount to purchase an immediate annuity or deferred annuity at the then prevailing annuity rates
- To purchase an immediate annuity or deferred annuity from another insurer at the then prevailing annuity rates to the extent of percentage stipulated by the authority, currently 50%, of the entire proceeds of the policy net of commutation.
- In Addition, the policyholder will also have the option to extend the accumulation period or deferment period within the same policy with the same terms and conditions as the original policy provided the policyholder is below the age of 60 years
Deferment of vesting date
The deferment of the vesting date (retirement date) can be intimated at any time before annuitisation. You can postpone the vesting date any number of times subject to the maximum vesting age of 75 years, provided you are below the age of 60 years.
Death benefit
In case of the unfortunate demise of the policyholder before the end of the HDFC Life Click 2 Retire Plan policy term, the nominee will receive the higher of the following:
- Fund Value
- 105 % of the total premiums paid till date.
The nominee has an option to take this amount as an annuity or to withdraw the proceeds.
What are the fund options in the HDFC Life Click 2 Retire?
There are 3 fund options in the policy.
| S no | Fund Name | Money Market Instruments, Cash & Deposits | Government Securities, Fixed Income Instruments & Bonds | Equity | Risk Profile |
| 1 | Pension Equity Plus Fund | 0% to 20% | 0% to 20% | 80% to 100% | Very High |
| 2 | Pension Income Fund | 0% to 20% | 80% to 100% | _ | Moderate |
| 3 | Pension Conservative Fund | 0% to 60% | 40% to 100% | _ | Moderate |
What are the charges in the HDFC Life Click 2 Retire?
Fund Management Charge
The Fund Management Charge is 1.35 % p.a. of fund value. This charge is charged daily and is a percentage of the unit funds.
Investment Guarantee Charge
| Premium / Payment Frequency | Regular & Limited Pay Options |
| Pension Equity Plus Fund | 0.50% p.a. |
| Pension Income Fund | 0.50% p.a. |
| Pension Conservative Fund | 0.10% p.a. |
Statutory Charges
Statutory Taxes and Levies as applicable would be charged. This shall include Taxes and levies, as applicable on or in respect of this HDFC Life Click 2 Retire Plan Policy.
Miscellaneous Charge(s)
A Miscellaneous Charge of Rs 250 shall be levied for any Policy alterations within the contract.
Inference from these charges: These charges act as overhead costs for the investor and can gradually eat into returns over the long term.
Grace Period, Discontinuance and Revival of HDFC Life Click 2 Retire
(For other than ‘Single Premium’ policies)
Garce Period
The grace period is 15 days for the monthly premium payment mode and 30 days for other premium payment modes.
Discontinuance
Discontinuance of Policy during the Lock-in Period: The Fund Value, after deducting the applicable Discontinuance charges, shall be credited to the Discontinued Policy Fund, and the risk cover and rider cover, if any, shall cease.
Discontinuance of Policy after the Lock-in Period: The HDFC Life Click 2 Retire Plan Policy shall be converted into a reduced paid-up policy with the paid-up sum assured.
i.e., the original sum assured multiplied by a ratio of “total period for which premiums have already been paid” to the “maximum period for which premiums were originally payable”.
Revival
You have the option to revive a discontinued policy within three consecutive years from the date of the first unpaid premium.
Free Look Period for HDFC Life Click 2 Retire
In case you are not agreeable to any of the terms and conditions stated in the HDFC Life Click 2 Retire Plan Policy, you have the option to return the Policy within 30 days from the date of receipt of the Policy, whether received electronically or otherwise.
Surrendering HDFC Life Click 2 Retire
In case of Single Premium Policies: The Policyholder has an option to surrender the Policy at any time. Upon receipt of the request for Surrender, the Fund Value as on the date of Surrender shall be payable.
Policy Surrendered during the Lock-in Period:
The fund value net of Policy Discontinuance Charges shall be credited to the Discontinued Policy Fund Pension, and it will continue to be invested in the Discontinued Policy Fund Pension till the end of the lock-in period or death of the life assured, whichever is earlier.
Policy Surrendered after Completion of Lock-in Period:
The policy stands terminated, and the fund value as on the date of surrender must be utilized by the policyholder in the same manner as the vesting benefit.
Utilization of Policy Proceeds for Discontinuance/Surrender:
To commute up to 60% and utilize the balance amount to purchase an immediate annuity or deferred annuity from us at the then prevailing annuity rates
To purchase an immediate annuity or deferred annuity from another insurer at the then prevailing annuity rates to the extent of the percentage stipulated by the authority, currently 50%, of the entire proceeds of the policy net of commutation.
What are the advantages of the HDFC Life Click 2 Retire?
- You have the flexibility to defer your vesting benefits beyond the original vesting date.
- The plan offers a settlement option for the death benefit, allowing the nominee to receive the payout in instalments instead of a lump sum.
What are the disadvantages of the HDFC Life Click 2 Retire?
- The plan does not offer any loan facility.
- Fund selection is limited, providing fewer investment choices.
- There is no lump sum maturity benefit; instead, benefits are provided as vesting proceeds at the end of the policy term.
- It is mandatory to use the vesting amount to purchase an annuity plan, limiting flexibility in how the corpus can be utilized.
Research Methodology of HDFC Life click 2 Retire
HDFC Life Click 2 Retire Plan allows you to build a retirement corpus through regular investments linked to market performance.
However, the plan does not provide guaranteed periodic payouts during the post-retirement phase, meaning the income stream after retirement is not built into the plan itself. Let’s understand this with an example:
Benefit Illustration – IRR Analysis of HDFC Life Click 2 Retire
A 35-year-old male invests ₹1 lakh annually in the HDFC Life Click 2 Retire Plan. He chose a premium payment term of 10 years and a policy term of 20 years, with a vesting age of 55. The death benefit in this case is ₹10.50 lakhs.
| Male | 35 years |
| Sum Assured | ₹ 10,50,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
He pays premiums for the first 10 years, and the benefits vest at the age of 55. It’s important to note that the vesting benefit—unlike a typical maturity benefit—cannot be withdrawn as a lump sum at the end of the policy term.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 36 | 2 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 37 | 3 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 38 | 4 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 39 | 5 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 40 | 6 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 41 | 7 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 42 | 8 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 43 | 9 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 44 | 10 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 45 | 11 | 0 | 10,50,000 | 0 | 10,50,000 |
| 46 | 12 | 0 | 10,50,000 | 0 | 10,50,000 |
| 47 | 13 | 0 | 10,50,000 | 0 | 10,50,000 |
| 48 | 14 | 0 | 10,50,000 | 0 | 10,50,000 |
| 49 | 15 | 0 | 10,50,000 | 0 | 10,50,000 |
| 50 | 16 | 0 | 10,50,000 | 0 | 10,50,000 |
| 51 | 17 | 0 | 10,50,000 | 0 | 10,50,000 |
| 52 | 18 | 0 | 10,50,000 | 0 | 10,50,000 |
| 53 | 19 | 0 | 10,50,000 | 0 | 10,50,000 |
| 54 | 20 | 0 | 10,50,000 | 0 | 10,50,000 |
| 55 | 13,10,944 | 23,79,713 | |||
| IRR | 1.75% | 5.67% | |||
At an assumed return of 4% per annum, the vesting benefit is ₹13.10 lakhs, yielding an IRR of just 1.75%, as per the HDFC Life Click 2 Retire Plan maturity calculator.
At an assumed return of 8% per annum, the corpus grows to ₹23.79 lakhs, with an IRR of 5.67%, as per the HDFC Life Click 2 Retire Plan maturity calculator.
While the product brochure includes annuity illustrations showing an annual income of ₹97,416 at 4% returns and ₹1,77,102 at 8% returns, these are merely indicative. The actual annuity will depend on two uncertain factors at the time of vesting:
- The final corpus accumulated
- The prevailing annuity rates
Since both are non-guaranteed, the actual retirement income may differ significantly from the illustration.
Moreover, the HDFC Life Click 2 Retire Plan imposes restrictions on how the corpus can be used. Investors are not allowed to deploy the accumulated amount towards personal goals or alternative investment avenues. Instead, they are obligated to use the proceeds to buy an annuity plan.
Only up to 60% of the vesting benefit can be commuted (withdrawn as a lump sum), while the remaining must go toward annuity purchase.
This lack of post-retirement flexibility and the mandatory annuitization requirement make HDFC Life Click 2 Retire less attractive as a retirement investment option.
HDFC Life Click 2 Retire Vs. Other Investments
The final payouts under the HDFC Life Click 2 Retire plan are not available for your discretionary use. Let’s consider an alternative strategy that offers better control, liquidity, and flexibility, allowing you to make the most of your retirement savings.
Using the same investment amount, you can build a more efficient retirement plan while also addressing life insurance needs separately.
HDFC Life Click 2 Retire Vs. Pure-term + PPF / ELSS
Let’s revisit the earlier example: Instead of investing ₹1 lakh annually in the Click 2 Retire plan, you can purchase a pure-term life insurance policy with a sum assured of ₹10.50 lakhs.
This would cost approximately ₹9,500 annually for a 20-year term with a 10-year premium payment term. This leaves you with ₹90,500 per year to invest based on your risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,50,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 9,500 |
| Investment | ₹ 90,500 |
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 36 | 2 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 37 | 3 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 38 | 4 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 39 | 5 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 40 | 6 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 41 | 7 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 42 | 8 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 43 | 9 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 44 | 10 | -97,500 | 10,50,000 | -1,00,000 | 10,50,000 |
| 45 | 11 | -500 | 10,50,000 | 0 | 10,50,000 |
| 46 | 12 | -500 | 10,50,000 | 0 | 10,50,000 |
| 47 | 13 | -500 | 10,50,000 | 0 | 10,50,000 |
| 48 | 14 | -500 | 10,50,000 | 0 | 10,50,000 |
| 49 | 15 | -500 | 10,50,000 | 0 | 10,50,000 |
| 50 | 16 | 0 | 10,50,000 | 0 | 10,50,000 |
| 51 | 17 | 0 | 10,50,000 | 0 | 10,50,000 |
| 52 | 18 | 0 | 10,50,000 | 0 | 10,50,000 |
| 53 | 19 | 0 | 10,50,000 | 0 | 10,50,000 |
| 54 | 20 | 0 | 10,50,000 | 0 | 10,50,000 |
| 55 | 26,70,691 | 49,62,684 | |||
| IRR | 6.44% | 10.59% | |||
Conservative Approach – Public Provident Fund (PPF):
If you invest the remaining ₹90,500 annually in a PPF account (with minimal contributions of ₹ 500 in the final years to meet lock-in rules), you can accumulate ₹26.70 lakhs over 20 years.
This translates to an Internal Rate of Return (IRR) of 6.44%. More importantly, the entire corpus is tax-free and fully accessible, offering complete liquidity.
Aggressive Approach – Equity-Linked Savings Scheme (ELSS):
If you’re comfortable with market risk, investing the ₹90,500 annually in ELSS funds could yield a corpus of ₹55.24 lakhs after 20 years. After accounting for capital gains tax, the post-tax corpus comes to ₹49.62 lakhs, delivering a solid post-tax IRR of 10.59%.
| ELSS Tax Calculation | |
| Maturity value after 20 years | 55,24,496 |
| Purchase price | 9,05,000 |
| Long-Term Capital Gains | 46,19,496 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 44,94,496 |
| Tax paid on LTCG | 5,61,812 |
| Maturity value after tax | 49,62,684 |
This alternative strategy allows you to deploy your retirement corpus across various investment options that suit your evolving needs and risk profile.
You maintain full control over your money, unlike the Click 2 Retire plan, where you’re compelled to purchase an annuity with limited access to your funds.
In short, flexibility—the cornerstone of effective retirement planning—is missing in HDFC Life Click 2 Retire but fully retained in this alternate, goal-based approach.
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Final Verdict on HDFC Life Click 2 Retire Plan
The HDFC Life Click 2 Retire Plan offers market-linked investment options to help you build a retirement corpus. However, the limited choice of funds and the lack of access to the full corpus at maturity reduce its overall appeal.
The mandatory purchase of an annuity further restricts your flexibility, locking you into a predefined structure for post-retirement income, and it also has a high agent commission.
As a result, you don’t get to fully benefit from the returns generated during the investment phase.
Additionally, the plan offers limited transparency regarding how the annuity functions, creating uncertainty about whether the income will be sufficient to meet rising post-retirement expenses.
These limitations make HDFC Life Click 2 Retire a less compelling option for retirement planning. A more effective approach is to channel your savings into flexible investment vehicles that allow full access to the accumulated corpus and align with your evolving financial goals.
To build a robust retirement corpus and gain early financial freedom, it’s essential to have a well-structured investment strategy.
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For personalized guidance on estimating your retirement needs and choosing the right mix of investments, consulting a Certified Financial Planner is highly recommended.
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