INSURANCE

LIC Saral Pension: A Simple Yet Powerful Pension Plan

When it comes to planning retirement in India, many people feel overwhelmed by the complex jargon, unpredictable markets, and endless product options. But what if you had a simple, government-backed, stress-free way to earn a fixed income for life?Enter LIC Saral Pension – a no-frills, immediate annuity plan by Life Insurance Corporation of India (LIC). It provides a guaranteed income for life starting immediately after a one-time payment. And yes, it comes with clear benefits, real returns, and peace of mind.Let’s explore how this plan works, who it’s meant for, and most importantly—how much you can expect to get in return. 👇

📜 What is LIC Saral Pension Plan?

The LIC Saral Pension plan is an immediate annuity plan, meaning you pay once and start receiving pension immediately (as early as next month or next quarter, based on the chosen payout frequency). It’s standardized across all insurers, as directed by IRDAI, which ensures transparency and simplicity.

You can choose to receive payments for just yourself or jointly with your spouse.

🧩 Features of LIC Saral Pension You Should Know

✅ Single premium: Pay once, earn for life
✅ Two annuity options: Life or Joint Life
✅ Return of Purchase Price: Full return to nominee after death
✅ Lifetime guaranteed income
✅ Offline & online purchase options
✅ Loan & surrender facility after 6 months under special conditions

👴 LIC Saral Pension Options – Which One Should You Choose?

Option 1: Life Annuity with Return of 100% Purchase Price

You receive pension as long as you live. After your death, the entire initial amount is returned to your nominee.

Option 2: Joint Life Last Survivor Annuity with Return of 100% Purchase Price

You and your spouse receive pension until both of you pass away. After that, the purchase amount goes to your nominee. Ideal for those who want lifelong protection for their partner.

👨‍👩‍👧‍👦 Eligibility for LIC Saral Pension

✅ Minimum Entry Age: 40 years
✅ Maximum Entry Age: 80 years
✅ Minimum Annuity: ₹1,000/month (₹12,000/year)
✅ Minimum Purchase Price: Based on age & payout mode
✅ No upper limit on investment

LIC Pensoin Calculator

LIC Saral Pension Calculator

Age of Annuitant (40–80): Purchase Price (₹): Annuity Option: Payment Mode: Was policy purchased online?

💸 LIC Saral Pension Returns Table (Estimated)

Here’s what you’re really waiting for—a realistic return table based on LIC’s brochure and illustrations. These are non-speculative and give a clear picture of what you can expect:

🎂 Age at Entry	💰 Purchase Price (₹)	🔁 Annuity Option	📆 Payout Mode	🧾 Annual Pension (₹)	💵 Monthly Pension (₹)	📈 Estimated ROI
60 Years	₹10,00,000	Life with Return	Yearly	₹62,300	~₹5,191	~6.23%
60 Years	₹10,00,000	Joint Life with Return	Yearly	₹61,600	~₹5,133	~6.16%
65 Years	₹10,00,000	Life with Return	Monthly	₹60,000 (est.)	₹5,000	~6.00%
70 Years	₹10,00,000	Life with Return	Monthly	₹66,000 (est.)	₹5,500	~6.60%
75 Years	₹10,00,000	Life with Return	Monthly	₹72,000 (est.)	₹6,000	~7.20%

📌 Note:

These values are approximations based on standard annuity rates and LIC examples.
“Return” here refers to yearly payout as a % of one-time investment.
Annuity rates are fixed at the time of purchase and remain constant for life.

📆 How LIC Saral Pension Works (With Example)

Suppose Mrs. Sharma, age 65, purchases LIC Saral Pension with ₹10,00,000 and selects monthly payouts under Option 1 (Life Annuity). She immediately starts receiving around ₹5,000/month. Upon her passing, her family receives the full ₹10,00,000 she originally invested.

For Joint Life (Option 2), her spouse would continue to receive the monthly pension until their death, after which the purchase price is refunded to the nominee.

🔄 Surrender and Loan Options

📉 Can I surrender LIC Saral Pension?

Yes—but only under specific situations like diagnosis of critical illness in self, spouse, or children. You will receive 95% of the purchase price after deductions.

💳 Can I take a loan?

Yes. Loans can be taken after 6 months. The interest is deducted from your annuity, and the principal can be repaid anytime. Current interest rate is 9.24% per annum (FY 2024–25).

💻 How to Buy LIC Saral Pension Online

Here’s how you can buy the plan from home:

Visit www.licindia.in
Navigate to “Buy Online” → “Saral Pension”
Enter details like age, amount, payout frequency
Make a secure payment
Get your policy document digitally

Alternatively, you can visit the nearest LIC branch for offline purchase.

👥 Who Should Buy LIC Saral Pension?

This plan is ideal for:

Retired or soon-to-retire individuals
Self-employed professionals without EPF
Housewives planning joint income with spouse
Conservative investors looking for fixed income
Senior citizens wanting legacy + income

🛡️ Why Choose LIC Saral Pension Over Others?

✔️ Standardized across insurers
✔️ Fixed income, no market risks
✔️ LIC trust and backing
✔️ Family protection with Joint Life option
✔️ Online bonus: 2% higher annuity rate

🤔 FAQs on LIC Saral Pension

❓ Is the return taxable?

Yes, annuity income is taxable as per your slab under “Income from Other Sources.”

❓ Can I change my annuity option later?

No, once chosen, the annuity option is locked for life.

❓ What if I die early?

Your nominee will receive the full purchase price if you’ve chosen either of the return options.

📝 Final Thoughts on LIC Saral Pension

In a world of volatile markets and uncertain returns, LIC Saral Pension stands tall as a simple, secure, and steady source of income. Whether you’re 45 and planning for a peaceful retirement, or 70 looking for monthly income, this plan gives you exactly what you need—guaranteed income, for life.

No hidden charges, no complicated terms—just straightforward retirement security.

So if you’re thinking about retirement, think simple, think Saral.

Tapan Das