LIC Pension Plans 2026

Keep reading to learn more about LIC Pension Fund schemes.

What are LIC Pension Plans?

LIC Pension Plans are insurance products that provide policyholders with a regular income after retirement. These plans help individuals save money during their working years, allowing them to receive a steady income in retirement. LIC of India offers several pension plans designed to help you achieve your financial goals, align with your risk profile, and fulfill your needs. Here are some of the best LIC pension plan options 2026:

Types of LIC Retirement Plans/ Pension Plans

LIC pension fund schemes are made to help people who want to buy an insurance plan for their retirement in a smooth way. You can look into different kinds, like single premium annuity plans, immediate or deferred annuity plans, and more.

Here are details on the different LIC retirement plans policies that can help you secure your life after retirement.

LIC New Jeevan Shanti 758

LIC New Jeevan Shanti 758 is a single premium payment policy where the insurance holder receives annuity payments after the deferment period. The annuity rates are determined at the policy's initiation and are paid throughout the annuitant's lifetime.

Features and Benefits of LIC New Jeevan Shanti

• The insured needs to invest only once to get lifelong guaranteed returns in the form of monthly income.

• One of the main benefits of LIC New Jeevan Shanti is Joint-life annuity option, which can be taken for any lineal ascendant/descendant of a family i.e., children, parents, grandparents or siblings, or spouse.

• With this pension plan LIC offers a guaranteed additional benefit every month during the deferment period. The total accrued amount is paid along with the death benefit amount.

• Under the policy, the policyholder can take a loan. The loan amount is limited to 80% of the surrender value.

LIC Jeevan Akshay-VII 857

LIC Jeevan Akshay-VII 857 is an immediate annuity LIC pension plan in which the policyholder can choose from 10 different annuity options. Under this LIC retirement plan, the annuity rate is guaranteed at the policy's initiation and paid to the annuitant throughout his/her lifetime.

Features and Benefits of LIC Jeevan Akshay VII

• This immediate annuity LIC pension scheme requires annuitants to pay a lump sum.

• The policyholder can choose to receive the annuity yearly, half-yearly, quarterly, or monthly.

• With this pension plan LIC offers the option of joint life immediate annuity for life with a provision for 50% of the annuity to the secondary annuitant on the demise of the primary annuitant.

• The annuity options available under this LIC pension plan are:

  • Lifetime Immediate Annuity

  • Lifetime Annuity with Return of Purchase Price

  • Immediate Annuity is guaranteed for 5/10/15/20 years (even on death); after that, it is payable for life.

  • Life Annuity increasing at a simple rate of 3% p.a.

  • Annuity for life with 50% or 100% to the spouse after the annuitant's death.

  • Annuity for life with 100% annuity for the spouse after the annuitant's death and Return of Purchase Price after the death of the last survivor.

LIC Saral Pension Plan 862

This LIC saral Pension Plan 862 must be purchased with a single premium. After that, the annuity will begin. Annuity rates in LIC’s Saral Pension scheme are guaranteed at inception and payable throughout annuitants' lifetime.

Features and Benefits of LIC Saral Pension Plan

• The minimal annuity is Rs. 12,000 yearly.

• The annuity mode will determine the minimum buying cost, buyer's age, and the option selected.

• No upper limit exists on the purchase price.

• After six months, policyholders can borrow against the scheme.

LIC New Pension Plus Plan 867

LIC New Pension Plus Plan 867 is unit-linked insurance plan (previously LIC Pension Plus 803) allows investors to invest their money in various market-linked funds to generate increased returns. The investor can use the total accumulated amount at the end of the policy term to buy an immediate or deferred annuity plan. This not only increases the savings corpus but secures the financial future of the pensioners and their families.
Now one can use the LIC Pension Plus maturity calculator to get an accurate idea of the benefits and the investment details.

Features and Benefits of LIC Pension Plus Plan

• Buyers can invest a lump sum single premium amount or invest a fixed sum regularly on a monthly, quarterly, half-yearly, or yearly basis.

• The invested amount can be annuitised to create a regular stream of income post-retirement. Annuitisation is the conversion of a lump sum amount to periodic fixed pensions/annuities.

• It comes with 4 different fund options ranging from equity and debt to a mix of both that one can choose per their risk tolerance.

• The most important benefit is the Guaranteed Additions that LIC of India makes to the fund value at specific policy years. These additions are 100% assured and made irrespective of any market fluctuations.

LIC Smart Pension Plan 879

The LIC Smart Pension Plan 879 is a single premium, immediate annuity plan designed to offer guaranteed lifetime income. This means you pay once, and start receiving a regular pension almost immediately for the rest of your life. It offers a variety of annuity options, including single-life and joint-life options, as well as flexible payout modes and customizable death benefit options. This LIC retirement plan is great if you want a steady income after you retire. You can buy it easily online or in person.

Features and Benefits of the LIC Smart Pension Plan

• Single premium LIC retirement plan with immediate annuity and several annuity choices.

• You can choose between Single Life and Joint Life annuities.

• There are four ways to receive the annuity: monthly, quarterly, half-yearly, and yearly.

• You can choose between three death benefits: an annuity, installments, or a lump sum.

• You can customize your plan with options like Advance Annuity, Liquidity, and Annuity Accumulation.

• Under this pension plan LIC offers a 3% incentive for current policyholders, nominees, and NPS subscribers.

• There is a loan option for when you need cash.

• Partial or full withdrawal is allowed under certain conditions.

• There is also coverage for dependents who are disabled.

• Enjoy tax benefits under Section 80C of the Income Tax Act.

Why You Should Have An LIC Pension Plan?

LIC Pension plans are your answer if you want to build a secure fund for retirement. These plans provide regular payments as an annuity or a monthly income, which you can use to fund your retired years and comfortably manage your spouse’s expenses. You can choose the vesting date, which is the date from which you become eligible to receive the pension, to coincide with the age at which you would supposedly retire. The LIC Pension schemes ensure that you have a financial backup and live a stress-free life after retirement.

Benefits of LIC Retirement Plans/Pension Plans

LIC pension plans offer numerous advantages to the insured policyholders. The benefits range from ensuring a regular income to covering healthcare costs or travel expenses. Let us look at them in more detail.

• Assured Income: LIC invests in stocks, bonds, mutual funds, real estate, and the money market to gain reasonable returns. This enables insured members to cover daily expenses without difficulty and continue with their lifestyle without financial stress.

• Financial Security: LIC retirement plans provide for disciplined saving helping you achieve long-term financial sustainability. They shield people from market risks in their post-retirement phase.

• Flexible Payment of Premiums: The LIC pension fund scheme is flexible regarding the premium paid as per the income level. Insurance buyers can opt for payment modes as per their convenience.

• Date of Vesting: LIC pension plans allow policyholders to choose a vesting age as per their retirement needs. This flexibility helps plan income flow according to personal career timetable.

• Death Benefits: With LIC retirement plans, if the policyholder dies, the nominee gets financial help. It protects the financial interests of family members.

• A Range of Schemes: The LIC pension fund scheme has a variety of plans which cater to different retirement needs. People can select plans according to the risk-taking ability and expected income.

• Advantages of Taxation: As per existing tax laws, LIC pension plans offer tax benefits too. Benefits scope will lessen overall tax implications matching as well as building retirement savings.

How Does the LIC Pension Plan Calculator Work?

The LIC pension plan calculator calculates the pension amount based on your input. The calculator can be used by anyone eligible to invest in a pension plan. Upon submission of the necessary information, the calculator provides the corpus one can accumulate by retirement with the invested amount. So, the LIC pension plan calculator shows you the amount invested until your retirement, interest earned throughout the scheme tenure, and the total corpus generated through this scheme.

Things to Keep in Mind Before Buying Best LIC Pension Plan

Let's discuss a few things you need to remember to ensure that you buy the best LIC pension plan that suits your needs.

Know Your Pension Needs

Understanding your retirement needs helps you plan better.

• Estimate how much money you’ll need after retirement

• Consider inflation (money loses value over time)

• Factor in:

  • Current savings

  • Daily expenses

  • Pending loans

  • Future financial needs

Buy a Plan Early

Starting early makes retirement planning easier.

• Begin investing in your 20s if possible

• Lower investment needed over time

• Benefit from compounding growth

• Late start (40s/50s) = higher investment required
  
  

Buy a Deferred or Immediate Annuity Plan

Managing lump sum wisely is important.

• Avoid keeping large idle amounts

• Invest maturity amount in annuity plans

• Options include immediate or deferred annuity

• Example: Use funds from LIC plans to generate regular income
  
  

Know the Types of LIC Pension Plans

Retirement planning keeps you financially safe in your golden years. You must have a clear understanding of your choices to be able to make the right decisions for yourself. There are various pension options available. The following are some of the schemes that address pension needs: 

• Employees' Provident Fund (EPF)

• Public Provident Fund (PPF)

• National Pension System (NPS)
  
  

The Type of Payout is Important

Choose payouts based on your needs.

• Some plans offer lump sum on maturity

• Others provide lifelong annuity income

• Consider:

  • Total returns

  • Return percentage

  • Convenience

Know the Charges /Fees

Charges can impact your returns.

• Check all charges/fees before choosing a plan

• Watch for hidden costs

• Lower charges = better net returns

• Helps you compare plans more accurately

How to Buy LIC Pension Plans?

Online
LIC of India offers specific LIC pension plans which are available online only. The customer only needs to log into the company's website, choose the required LIC pension plan, choose the coverage, and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card, or net banking facilities, and the policy will be issued.

Follow the steps given below:

Step 1: Visit the Official website of LIC of India

Step 2: Click on the “Buy Online” option on the top right corner.

Step 3: Fill in your details such as Name, DOB, Contact number

Step 4: Customize the LIC Pension plan by choosing the sum assured, policy term, and premium frequency per your requirements. You can also add any rider for enhanced protection.

Step 5: Once you've completed this step, pay the premiums online. Once the payment is confirmed, your policy details and premium receipt will be sent to your personal email address.

Through Intermediaries
LIC pension plans which are not available online can be purchased from LIC agents, brokers, banks, etc., where the intermediaries help with the application process.

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