An immediate annuity is when your pension starts flowing in as soon as you have paid the purchase price. LIC of India offers two immediate annuity pension plans viz. LIC’s Saral Pension and LIC’s Jeevan Akshay-VII. The LIC immediate annuity plan calculator offers insight into the pension amount you are likely to receive if you invest in either of these plans.
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It is an online tool that will help you calculate the pension amount yourself before actually investing your money in the plan.
If you are planning your retirement, you probably have an idea of how much income you would need after retirement to sustain your lifestyle. The LIC Immediate Annuity Plan Calculator allows you to see how much you would have to invest to get to that desired pension amount.
The LIC immediate annuity plan calculator uses the following factors to give you accurate estimates of the pension amount -
Purchase price
Current age
Type of annuity - annuity for life, joint life or single life annuity, increasing annuity, etc.
Expected annuity amount
Frequency of pension - monthly, quarterly, half-yearly, or yearly
To be able to use the LIC Immediate Annuity Plan Calculator, you should be aware of the eligibility conditions of both the LIC annuity plans.
Criteria | LIC Saral Pension | LIC Jeevan Akshay-VII |
Minimum Age at Entry | 40 years | 30 years |
Maximum Age at Entry | 80 years | 85 to 100 years |
Minimum Purchase Price | Depends on a minimum annuity | Rs. 1 Lakh |
Maximum Purchase Price | No limit | No limit |
Minimum Annuity | For Monthly: Rs 1000 For Quarterly: Rs. 3000 For Half-yearly: Rs. 6000 For Annually: Rs. 12000 |
For Monthly: Rs 1000 For Quarterly: Rs. 3000 For Half-yearly: Rs. 6000 For Annually: Rs. 12000 |
For this plan, let’s take the following sample -
Purchase price - Rs.10 Lakhs
Age at entry - 60 years
Frequency of annuity - Annually
Type of annuity - Lifetime annuity
The yearly annuity payouts come to be Rs.56,450. A key feature of the LIC Saral Pension is that it returns 100% of the purchase price to you.
Let’s assume the following to use this LIC annuity calculator -
Purchase price - Rs.10 Lakhs
Age at entry - 45 years
Frequency of annuity - Annually
Type of annuity - Lifetime annuity
Based on the above fields, the yearly annuity amount comes to be equal to Rs.67,950. You will get this amount every year till your death.
It will help you understand if your current savings is enough to start receiving the annuities you will need when you retire. With immediate annuities, you start receiving a pension right after the investment period. This leaves very little room to accumulate returns on your investment. With the help of this digital tool, you will at least have a clear estimate of the pension amount so that you can adjust your financial plan accordingly.
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LIC pension plans include the following -