1. What is the LIC Smart Pension Plan?

The LIC Smart Pension Plan is a single premium deferred pension plan that provides a regular income stream during retirement years. It allows individuals to build a retirement corpus through a lump sum investment.

2. How Does the Calculator Work?

The calculator uses the simple pension formula:

Where:

• \( \text{Purchase Price} \) — Single premium amount paid (INR)
• \( \text{Annuity Rate} \) — Decimal rate determining pension amount
• \( \text{Pension} \) — Monthly pension amount (INR)

Explanation: The annuity rate is predetermined by LIC based on age, policy term, and other factors. Higher purchase price and annuity rate result in higher monthly pension.

3. Importance of Pension Planning

Details: Proper pension planning ensures financial security during retirement years, helps maintain living standards, and provides protection against inflation and longevity risks.

4. Using the Calculator

Tips: Enter the single premium amount in INR and the annuity rate as a decimal (e.g., 0.05 for 5%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum purchase price for LIC Smart Pension Plan?
A: The minimum purchase price varies but typically starts from ₹1,00,000 for a meaningful pension amount.

Q2: How is the annuity rate determined?
A: Annuity rate depends on factors like age at vesting, policy term, pension mode, and current market conditions set by LIC.

Q3: Can I surrender the policy before vesting date?
A: Surrender provisions are available but may involve surrender charges and reduced payouts. Early surrender is generally discouraged.

Q4: What pension modes are available?
A: Common modes include monthly, quarterly, half-yearly, and annual pension payments with various annuity options.

Q5: Is the pension amount fixed or variable?
A: The basic pension is fixed, but riders and options may provide inflation-linked or increasing pension features.