Why Consider LIC for Retirement?
LIC pension plans offer something no mutual fund or stock market investment can guarantee — a fixed monthly income for your entire life, no matter how long you live. While market-linked investments may give higher returns, they come with the risk of market downturns exactly when you need the money most. LIC pension plans eliminate this uncertainty.
The ideal retirement strategy combines both: market-linked investments (SIP, NPS) for growth during working years, and LIC annuity plans for guaranteed income during retirement.
LIC Jeevan Akshay VII (Immediate Annuity)
- How it works: Pay a one-time lump sum (purchase price). Receive pension immediately — monthly, quarterly, half-yearly, or yearly
- Minimum purchase price: ₹1,00,000
- Entry age: 30-85 years
- 10 annuity options including: Life annuity (pension for life, nothing on death), Life annuity with return of purchase price (pension for life + purchase price returned to nominee on death), Joint life annuity (pension continues to spouse after your death)
- Example: ₹30 lakh purchase price at age 60, Life annuity with return of purchase price = approximately ₹18,000-20,000/month pension for life. On death, ₹30 lakh goes back to family
- Best for: Retirees who want immediate guaranteed monthly income from their retirement corpus
LIC New Jeevan Shanti (Deferred Annuity)
- How it works: Pay premiums during working years (single pay or regular). Pension starts after the deferment period (your chosen retirement age)
- Entry age: 30-79 years (for single premium), 30-66 years (for regular premium)
- Deferment period: 1-20 years
- Key advantage: You invest gradually during your earning years and receive pension when you actually retire. Better than investing a lump sum at retirement
- Best for: Working professionals 10-20 years from retirement who want to build a guaranteed pension corpus
LIC Saral Pension
- How it works: Simplified immediate annuity plan mandated by IRDAI. Standardised across all insurers
- Two annuity options only: Life annuity with return of 100% purchase price, or joint life annuity with return of 100% purchase price
- Minimum purchase price: ₹1,00,000 (single premium) or annuity of ₹1,000/month (regular premium)
- Best for: People who want a simple, standardised pension plan without complex options
How Much Pension Will You Get?
Pension amount depends on your age at purchase, purchase price, and annuity option chosen. Approximate rates for Life Annuity with Return of Purchase Price:
- Age 55, ₹20 lakh — Approximately ₹10,000-11,000/month
- Age 60, ₹30 lakh — Approximately ₹18,000-20,000/month
- Age 60, ₹50 lakh — Approximately ₹30,000-33,000/month
- Age 65, ₹50 lakh — Approximately ₹35,000-38,000/month
Higher age = higher pension rate (because expected payout period is shorter).
For exact pension calculations based on your age and budget, consult our LIC agent for free.