Many people working in the private sector save money during their careers but lack a structured pension plan after retirement. This can create financial stress in old age. To ensure a steady income in retirement, it is crucial to invest in a reliable pension scheme.
LIC’s Saral Pension Yojana is one such plan where you can secure a lifelong pension with a one-time premium payment. The best part? You can start receiving your pension from the age of 40 years.
What is LIC’s Saral Pension Yojana?
Saral Pension Yojana is a single premium immediate annuity plan, meaning you pay once and start receiving a pension for life. In case of the policyholder’s death, the nominee receives the entire premium amount.
This plan ensures immediate financial security after retirement, as pension payments begin right after purchasing the policy.
Types of Saral Pension Yojana
There are two ways to avail of this pension:
1. Single Life Annuity
In this option, the policy remains in the name of one individual. The pension continues as long as the person is alive. After their passing, the premium amount is refunded to the nominee.
2. Joint Life Annuity
This plan covers both spouses. The primary pensioner receives the pension first. After their death, the spouse continues to receive the pension for life. When both have passed away, the nominee receives the base premium amount.
Who Can Apply for Saral Pension Yojana?
Anyone between 40 to 80 years can invest in this plan. Since it is a lifelong pension scheme, the benefits continue for as long as the pensioner is alive. If needed, the policy can be surrendered after six months.
When Will You Receive the Pension?
You can choose how frequently you receive your pension monthly, quarterly, half-yearly, or annually. Once you select a schedule, the payments start accordingly.
How Much Pension Will You Get?
The pension amount depends on how much you invest. The minimum pension starts at ₹1,000 per month, ₹3,000 per quarter, ₹6,000 every six months, or ₹12,000 per year. There is no upper limit you decide your pension amount based on your investment.
For example, if you invest ₹10 lakh at the age of 40, you will receive ₹50,250 annually for life. If you need to withdraw your investment before maturity, you can get the deposited amount back with a 5% deduction.
How Much Pension at Age 60?
According to LIC, if you invest ₹10 lakh at age 60, you will receive ₹64,350 annually. If you and your spouse (aged 55) choose the Joint Life Plan, the pension will be ₹63,650 annually.
Investment Available Till 80 Years of Age
You can invest in Saral Pension Yojana anytime before turning 80 and start receiving your pension immediately. This makes it a great option for late retirement planning.
Additional Benefits: Loan & Surrender Facility
This plan also offers a loan facility after six months of purchase, ensuring financial flexibility during emergencies. If required, you can surrender the policy after six months and receive a refund of the eligible amount.
Why Choose Saral Pension Yojana?
This plan provides financial stability with a one-time investment. It ensures a secure retirement with guaranteed pension payments, flexibility in payout options, and the ability to cover a spouse in the Joint Life Plan. Additionally, it allows you to access funds through a loan or policy surrender if needed.
If you’re looking for a hassle-free, risk-free pension plan, LIC’s Saral Pension Yojana is an excellent option for securing your future.