1. What is LIC Pension Calculator?

The LIC Pension Calculator helps estimate the monthly pension amount you can expect from your Life Insurance Corporation pension plan based on your investment, age, and chosen plan options.

2. How Does the Calculator Work?

The calculator uses the pension formula:

Where:

• \( Investment \) — Lump sum amount invested in the pension plan (INR)
• \( Rate \) — Annuity rate based on age, plan type, and payout option (decimal)
• \( Pension \) — Monthly pension amount (INR)

Explanation: The annuity rate varies based on your age at vesting, type of pension plan (immediate/deferred), and the chosen payout option.

3. Importance of Pension Planning

Details: Proper pension planning ensures financial security during retirement years. LIC pension plans provide regular income, tax benefits, and life cover benefits.

4. Using the Calculator

Tips: Enter your total investment amount in INR, your current age (18-100 years), select the plan type (immediate or deferred annuity), and choose your preferred payout option.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between immediate and deferred annuity?
A: Immediate annuity starts pension immediately after investment, while deferred annuity starts after a specified deferment period.

Q2: How are annuity rates determined?
A: Annuity rates depend on age, plan type, payout option, and prevailing interest rates. Higher age generally means higher annuity rates.

Q3: What are the tax benefits of LIC pension plans?
A: Investments qualify for tax deductions under Section 80C, and pension income is taxable as per your income tax slab.

Q4: Can I surrender my pension plan?
A: Surrender terms vary by plan. Some plans allow surrender with penalties, while others may not permit surrender after vesting.

Q5: Is the pension amount fixed or variable?
A: Most LIC pension plans offer fixed pension amounts, but some plans may have inflation-linked options.