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LIC Pension Plan Formula:
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The LIC Pension Plan is a retirement planning scheme offered by Life Insurance Corporation of India that helps individuals build a corpus for their post-retirement life through regular investments and provides a steady monthly pension income.
The calculator uses the simple pension formula:
Where:
Explanation: The formula calculates the monthly pension by multiplying the total investment amount with the applicable pension rate.
Details: Proper pension planning ensures financial security during retirement years, helps maintain living standards, and provides peace of mind knowing that regular income will be available after stopping active employment.
Tips: Enter the total investment amount in INR and the pension rate as a decimal value (for example, 0.08 for 8%). Ensure both values are positive numbers with investment greater than zero and rate between 0 and 1.
Q1: What is the typical pension rate for LIC plans?
A: Pension rates vary depending on the specific plan, age at retirement, and investment duration. Typical rates range from 5% to 10% annually.
Q2: Is the pension amount fixed or variable?
A: Most LIC pension plans offer fixed monthly pensions, but some plans may have variable options linked to market performance.
Q3: Can I increase my pension amount later?
A: Some plans allow top-up investments to increase the pension corpus, but this depends on the specific plan terms and conditions.
Q4: What happens to the pension after the policyholder's death?
A: Most plans offer survivor benefits where the pension continues to the spouse or nominee, though the amount may be reduced.
Q5: Are there tax benefits on LIC pension plans?
A: Yes, investments in LIC pension plans qualify for tax deductions under Section 80C of the Income Tax Act, subject to prevailing tax laws.