Planning for retirement is crucial, and choosing the right pension plan ensures financial security in old age. The Life Insurance Corporation of India (LIC) offers several pension schemes that provide a regular monthly pension for life after investment. Whether you are planning for early retirement or looking for a steady income post-retirement, LIC has options tailored to your needs.
To help you make an informed decision, we will break down the top LIC pension plans, their benefits, eligibility, and how they can help you enjoy a stress-free retirement.
The Best LIC Pension Plans to Secure Your Retirement
| Feature | Details |
|---|---|
| Best LIC Pension Plans | Jeevan Akshay VII, New Jeevan Shanti, Saral Pension, New Pension Plus |
| Minimum Investment | Varies by plan (starts from ₹1.5 lakh) |
| Monthly Pension | Based on investment amount and annuity option |
| Eligibility | 30 to 85 years (depending on the plan) |
| Returns | Varies by annuity option; guaranteed lifelong income |
| Where to Buy | LIC India Official Website |
Choosing the right LIC pension plan ensures a stress-free retirement with a guaranteed monthly income. Whether you prefer immediate payouts (Jeevan Akshay VII), deferred pensions (New Jeevan Shanti), a simple plan (Saral Pension), or market growth (New Pension Plus), LIC has options for everyone.
Why Choose LIC Pension Plans?
LIC is the most trusted insurance provider in India, known for its financial stability, government backing, and guaranteed payouts. Here are some key benefits of choosing LIC’s pension plans:
- Assured Monthly Income: Once invested, you get a guaranteed pension for life.
- Flexible Investment Options: Choose between single premium or regular premium plans.
- Multiple Annuity Options: Get pension payouts monthly, quarterly, half-yearly, or annually.
- Tax Benefits: Enjoy tax deductions under Section 80CCC of the Income Tax Act.
- Lifetime Coverage: Most LIC pension plans cover you for life and offer a return of purchase price to nominees.
- Loan Facility: Some LIC pension plans allow you to avail loans after a specific period.
see also: Solve ATM Problems
LIC Jeevan Akshay VII (Best for Immediate Pension)
If you are looking for instant pension payouts, this is the ideal plan. You invest a lump sum, and pension starts immediately.
- Type: Immediate Annuity Plan
- Eligibility: 30 to 85 years
- Investment: Starts at ₹1 lakh (no maximum limit)
- Pension Frequency: Monthly, quarterly, half-yearly, or yearly
- Annuity Options: 10 different payout options
- Loan Availability: Yes (after 3 years)
- Best For: Retirees looking for guaranteed lifelong income.
LIC New Jeevan Shanti (Best for Deferred Pension)
If you want to invest now and receive pension later, this plan is perfect. You can choose to receive payouts after 5 to 20 years.
- Type: Deferred Annuity Plan
- Eligibility: 30 to 79 years
- Investment: Starts at ₹1.5 lakh
- Pension Start: After deferment period (5-20 years)
- Payout Options: Single or joint life annuity
- Loan Availability: Yes (after 5 years)
- Best For: Individuals planning for long-term retirement security.
LIC Saral Pension (Government-Backed Standard Plan)
A simple, standardized pension plan backed by IRDAI.
- Type: Immediate Annuity Plan
- Eligibility: 40 to 80 years
- Investment: Starts at ₹2.5 lakh
- Annuity Options: Single or joint-life annuity
- Loan Availability: Yes (after 6 months)
- Best For: Those looking for a hassle-free, government-backed pension plan.
LIC New Pension Plus (Best for Market-Linked Growth)
This is a ULIP-based pension plan, ideal for those who want to grow their retirement corpus over time.
- Type: Unit-Linked Pension Plan
- Eligibility: 25 to 75 years
- Investment: Monthly or lump sum
- Returns: Market-linked growth
- Payout Options: Lump sum or annuity at retirement
- Loan Availability: No
- Best For: Young investors looking for higher retirement savings.
How to Choose the Right LIC Pension Plan?
- If you need pension immediately, go for Jeevan Akshay VII.
- If you can wait and grow your investment, pick New Jeevan Shanti.
- If you want a simple government-backed plan, choose Saral Pension.
- If you want market-linked returns, New Pension Plus is best.
How to Buy an LIC Pension Plan?
- Visit LIC’s official website (licindia.in) or nearest LIC branch.
- Choose your preferred pension plan based on your needs.
- Use LIC’s online calculator to estimate pension payouts.
- Fill out the application form and submit the required KYC documents.
- Make the payment (online, cheque, or at LIC offices).
- Receive policy documents and confirmation.
see also: Equity, Gold, or PPF: Which Investment is Right for You?
The Best LIC Pension Plans FAQs
1. Which LIC pension plan gives the highest return?
LIC Jeevan Akshay VII offers the highest immediate annuity, while New Pension Plus provides market-linked growth.
2. Can I withdraw my money early?
LIC pension plans do not allow premature withdrawal, except in special cases like terminal illness.
3. Are LIC pension plans tax-free?
Contributions are tax-deductible under Section 80CCC, but pension income is taxable as per income slab.
4. Can I take a loan on LIC pension plans?
Yes, LIC offers loan facilities on most pension plans after a minimum lock-in period.
5. Is LIC better than private pension providers?
Yes, LIC offers government-backed stability and guaranteed lifelong payouts, unlike market-dependent private plans.
