Get a guaranteed monthly pension with this LIC scheme; find out how much to invest.

LIC Pension Scheme: The LIC Smart Pension Plan offers a regular pension following a lump-sum investment. Let’s explore how much investment is required to secure a specific monthly pension after retirement.

LIC Smart Pension Plan: Nowadays, everyone dreams of receiving a fixed monthly pension after retirement so that they do not have to depend on others in their old age. If you are looking for a scheme that provides a fixed monthly pension after a one-time investment, the LIC Smart Pension Plan from the Life Insurance Corporation of India (LIC) could be an excellent option for you. Under this scheme, you make a lump-sum investment, and subsequently, you begin receiving a pension at regular intervals.

If you wish to remain financially independent in your old age, this scheme could be very useful. It is particularly suitable for those who desire a regular post-retirement income without the risks associated with stock market fluctuations. Let’s look at the key features of this plan and the pension amounts corresponding to different investment levels.

What is the LIC Smart Pension Plan?

It is an Immediate Annuity plan.
It requires a one-time lump-sum investment.
Pension payments begin at a scheduled time following the investment.
The plan is not linked to the stock market; therefore, market volatility does not affect the pension amount.

Pension payout options

Monthly
Quarterly
Half-yearly
Annually

You can choose the pension payout frequency that best suits your needs. Additionally, you can purchase this policy individually or as a joint plan with your spouse.

How much do you need to invest?

If you wish to receive a guaranteed monthly pension of approximately ₹20,000 or ₹24,000, you may need to make a lump-sum investment of around ₹35 lakh in this scheme. Under this scheme, one can receive an estimated annual pension of approximately ₹2.87 lakh, or about ₹23,940 per month. However, the actual pension amount may vary depending on your age and the chosen plan.

Key features of the scheme:

The policy can be purchased on either a single or joint basis.
The scheme offers an option to increase the pension by 3% or 6% annually.
In the event of the policyholder's death, the invested principal amount is refunded to the nominee.
The minimum investment starts at ₹1 lakh.
There is no upper limit on the investment amount.