In recent years, the allure of private sector jobs has increased due to competitive pay, although they often lack pension benefits. Recognizing the growing need for pension security, LIC has launched the Saral Pension Scheme, offering individuals a reliable option for retirement planning.

The LIC Saral Pension Scheme is a Standard Immediate Annuity plan by the guidelines of the Insurance Regulatory and Development Authority of India (IRDAI). ()

The scheme guarantees annuity rates at the policy’s inception, providing annuities throughout the annuitant’s lifetime. ()

The scheme offers two annuity options:

Life Annuity with a return of 100 percent of the Purchase Price.

Joint Life Last Survivor Annuity with a Return of 100 percent of the Purchase Price on the death of the last survivor, available for married policyholders.

To be eligible, the policyholder must be between 40 and 80 years old. There is no maximum limit on the purchase price.

Minimum annuity amounts range from Rs 1,000 per month to Rs 12,000 per annum, depending on the chosen frequency.

The scheme provides incentives for higher purchase prices, with increasing annuity rates for three purchase price slabs. The incentive also varies based on the mode of annuity payments and increases with the reduction in payment frequency.

The Saral Pension Scheme offers individuals a practical retirement planning solution, allowing the purchase of annuity through lump sum investments, including funds from PF and Gratuity accrued upon retirement.

According to LIC Calculator, a 42-year-old investing Rs 30 lakh would receive Rs 12,388 every month as pension.

Source