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LIC Smart Pension Plan Formula:
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The LIC Smart Pension Plan 2025 is a single premium deferred pension plan that provides a regular pension income during the retirement years. It offers financial security and stability for individuals planning their retirement.
The calculator uses the simple pension formula:
Where:
Explanation: The formula calculates the monthly pension amount based on the lump sum investment and the applicable annuity rate.
Details: Proper pension planning ensures financial independence during retirement years, protects against inflation, and provides a steady income stream when regular employment income ceases.
Tips: Enter the purchase price (single premium amount in INR) and the annuity rate as a decimal (e.g., 0.05 for 5%). Both values must be positive numbers with annuity rate between 0 and 1.
Q1: What is the minimum purchase price for LIC Smart Pension Plan?
A: The minimum purchase price varies by plan terms but typically starts from ₹1,00,000 for single premium plans.
Q2: How is the annuity rate determined?
A: The annuity rate is determined by LIC based on current market conditions, age at vesting, and the chosen pension option.
Q3: Can I surrender the policy before retirement?
A: Surrender terms vary by plan. Early surrender may attract charges and result in reduced benefits. Consult the policy document for specific terms.
Q4: Is the pension amount fixed or variable?
A: In deferred pension plans, the pension amount is generally fixed at the time of vesting based on the purchase price and applicable annuity rate.
Q5: Are there tax benefits available?
A: Premiums paid may be eligible for tax deductions under Section 80C of Income Tax Act, subject to prevailing tax laws and limits.