1. What is LIC Superannuation Pension?

LIC Superannuation Pension is a retirement benefit provided by Life Insurance Corporation of India that offers regular pension payments based on the accumulated fund and annuity rate. It ensures financial security during retirement years.

2. How Does the Calculator Work?

The calculator uses the LIC Superannuation Pension formula:

Where:

• \( \text{Pension} \) — Monthly pension amount (INR)
• \( \text{Accumulated Fund} \) — Total fund accumulated (INR)
• \( \text{Annuity Rate} \) — Annuity rate as decimal (e.g., 0.05 for 5%)

Explanation: The formula calculates the monthly pension by multiplying the total accumulated fund with the applicable annuity rate.

3. Importance of Pension Calculation

Details: Accurate pension calculation helps in retirement planning, ensuring adequate financial support during post-retirement years and proper management of superannuation benefits.

4. Using the Calculator

Tips: Enter accumulated fund in INR and annuity rate as decimal (e.g., 0.06 for 6%). Both values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is an accumulated fund in LIC superannuation?
A: The accumulated fund is the total amount contributed by the employer and employee over the employment period, along with investment returns.

Q2: How is annuity rate determined?
A: Annuity rate is determined by LIC based on factors like age at retirement, type of annuity chosen, and prevailing market conditions.

Q3: Is the pension amount fixed or variable?
A: It depends on the annuity plan chosen - it can be fixed for life or variable with inflation protection options.

Q4: Can I withdraw the accumulated fund as lump sum?
A: Typically, only one-third can be withdrawn as tax-free lump sum, while the remaining two-thirds must be used to purchase annuity.

Q5: Are LIC pension payments taxable?
A: Pension received is taxable as income under the head 'Income from Other Sources' as per prevailing income tax laws.