Life Insurance Corporation of India (LIC), the country’s largest insurance provider, offers several plans designed for different age groups and financial goals.
Among them, the LIC Smart Pension Scheme stands out for people looking for stable income after retirement.
This plan is an immediate annuity scheme, which means pension payments start soon after you make a one-time lump-sum investment.
Once started, the income continues for life, offering financial security in old age.
Why LIC Smart Pension Plan Is a Safe Choice
LIC Smart Pension is ideal for investors who prefer guaranteed income and want to avoid stock market ups and downs.
It is a non-linked and non-participating plan, so returns are not affected by market movements.
The minimum investment required is ₹1 lakh, and there is no upper limit.
This allows investors to choose the investment amount based on their retirement needs.
Since the pension is guaranteed, it is often considered a zero-risk option for retirement income planning.
Fixed Pension for Life With Flexible Options
The pension amount is fixed at the time of policy purchase and is paid for the entire lifetime of the policyholder.
The plan can be taken individually or jointly with a spouse.
Investors can choose how often they want to receive the pension—monthly, quarterly, half-yearly, or annually.
There are also options to increase the pension by 3% or 6% every year, or to ensure the invested amount is returned to the family after the policyholder’s death.
This makes the plan suitable for retired government employees, private-sector workers, and senior citizens looking for regular post-retirement income.
How to Get ₹10,880 Monthly Pension
To earn a monthly pension of around ₹10,880, an investor needs to make a one-time investment of ₹20 lakh in the LIC Smart Pension Plan.
As per LIC’s calculation, this investment can generate an annual pension of ₹1,36,000.
If paid monthly, this works out to ₹10,880 per month.
The same amount equals ₹32,980 if paid quarterly and ₹66,640 if paid half-yearly.
The exact pension amount may vary depending on the investor’s age and the selected pension option at the time of purchase.
