Introducing the LIC Saral Pension Plan, according to the Life Insurance Corporation of India this scheme is a simple and secure way to plan for your retirement. This immediate annuity plan provides a steady income stream, ensuring financial independence in your golden years. With the flexibility to start receiving a pension from age 40, you can enjoy a worry-free life without waiting until 60. Thus, let’s find out how much you need to invest if you want a Rs 64,000 annual pension on Rs 10 lakh one-time investment. 

What is LIC Saral Pension Plan?

LIC’s Saral Pension Plan is an immediate annuity plan. As soon as you buy the policy, you start receiving a pension. The best part is that you don’t have to wait until you’re 60 to get pension benefits. You can start getting a pension from as early as 40 years old.

Eligibility criteria

Minimum Age at Entry: 40 years (completed)
Maximum Age at Entry: 80 years (completed)

One-time payment, lifetime pension

This pension scheme has a unique feature: you only need to pay the premium once when you buy the policy. After paying the premium, you’ll start receiving a pension immediately, and the amount you receive in the first installment will remain the same for life.

Choose your plan: Single Life or Joint Life

The Saral Pension Plan comes in two options: Single Life and Joint Life.

Single Life Plan
Pension is paid to the policyholder as long as they live.
After their death, the invested amount is returned to the nominee.

Joint Life Plan

• Covers both spouse and policyholder.
• Pension is paid to the primary policyholder during their lifetime.
• After their death, the spouse receives the pension benefit.
• After both pass away, the accumulated amount is given to the nominee.
• Pension amount and payment options

Under the Saral Pension Scheme:

• The minimum monthly pension is Rs 1,000.
• There is no maximum limit on the pension amount.
• The pension amount depends on the invested amount.

You can choose from the following pension payment options:

• Monthly
• Quarterly
• Half-yearly
• Yearly

Your pension will be paid according to the option you choose.

What should be your investment amount to get Rs 64,000 annual pension?

According to LIC’s website, investing Rs 10 lakh at 60 years of age in the Saral Pension Plan will give an annual return of Rs 64,350. Also, if you’re 60 and your spouse is 55, opting for the Joint Life Plan will provide an annual return of Rs 63,650.

Investment Age: 40 to 80 years

You can invest in this scheme anytime between 40 to 80 years of age and start receiving pension benefits immediately. If you invest in the Saral Pension Scheme at 40, you will start receiving pension benefits from that very age, which will continue for life.

(Disclaimer: Our calculations are projections and not investment advice. Do your due diligence or consult an expert for financial planning)