ULPPs ride on market returns to promise a bigger nest-egg

UNLIKE TRADITIONAL INVESTMENT products that may not be designed with retirement income in mind, Unit Linked Pension Plans (ULPP) bring together long-term investing, pension accumulation and regulatory safeguards within a single structure, making them a relevant addition to a retirement portfolio.

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These generally come with a mandatory lock-in period of five years, which encourages investors to stay focused on long-term retirement goals instead of making premature withdrawals.

Vesting stage

More importantly, ULPPs are structured around retirement outcomes rather than short-term gains. When the policy reaches its vesting stage, a portion of the accumulated corpus can be withdrawn as a lump sum, while the remaining amount is used to purchase an annuity that provides regular pension income.

Fund management