SBI Pension Plans for NRI 2022

As a Non-Resident Indian (NRI), the retirement decision is not as simple as for Indian residents. You must make that hard decision if you want to stay in your host country or move back. While planning your retirement, you also need to consider exchange rates, inflation, and future monetary fluctuations. State Bank of India (SBI) has come up with curated pension plans for NRIs to make it easier for them to decide. They are offering various plans which would help you plan your retirement well.

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National Pension Scheme SBI

The National Pension Scheme SBI is part of the NPS Scheme launched by the Government of India in 2004 by the Pension Fund Regulatory and Development Authority (PFRDA) to encourage people living abroad or in the country to create a corpus. 

The fund is managed by the SBI Pension Funds Private Limited (SBIPFPL), a subsidiary of the State Bank of India. The scheme offers NRI customers within the age group of 18-60 years to create a pension fund that they can use for themselves in their retirement years.

The scheme allows the investors to invest in either Tier I or even both plans at the same time: 

  • Tier I – The account under the SBI NPS scheme does not allow the customer to withdraw any amount invested. This is a mandatory account and offers tax benefits to the account holders. 

  • Tier II – The account can only be opened by investors who already have a Tier I account. The consumers are allowed to withdraw funds from this voluntary account. 

Key Features of the accounts are: 

  1. Tier I

    • The minimum account opening amount is Rs 500

    • The minimum contribution amount is Rs 500

    • The minimum account balance at year-end is Rs 6,000

    • Part Withdrawals under Tier 1

      • The account allows its consumers to withdraw a part of their pension, not exceeding 25% of the total contribution. 

      • There is a 3-year lock-in period. 

      • The consumers are only allowed to withdraw a maximum of three times during the entire plan term. 

    • Exit Strategy under Tier I

      • After the age of 60 years: 

        • The client must make a mandatory investment of 40% of the total fund amount in the Annuity Scheme

        • The remaining 60% of the invested funds can be withdrawn in a lump sum or stay invested until you turn 70. 40% of the total withdrawal is tax-free. 

      • Before the age of 60 years (After completion of 10 Years)

        • 20% of the fund amount can be withdrawn in a lump sum

        • 80% of the fund amount must be invested in Annuity Scheme

  2. Tier II

    • The minimum account opening amount is Rs 1,000

    • The minimum contribution amount is Rs 250

    • The minimum account balance at year-end is Rs 2,000

SBI Pension Plan for NRI

SBI is currently offering attractive insurance plans at competitive rates to help Indians living onshore or overseas. 

  1. SBI Life Saral Pension 

    SBI Life Saral Pension plan is one of the most reliable pension plans for the NRI Market. The plan provides:

    • Security – Under the plan, you can expect to live a stress-free retired life. 

    • Flexibility – The fund aims to provide a fixed annual payout for the lifetime

    • Reliability – An option to choose from 2 life annuity options under the Saral Pension Plan

    The key features of the plan are: 

    • Your investment is vested in a Standard Immediate Annuity plan.

    • You can choose Single Life Annuity or Joint Life Annuity option from the available return of premium options.

    • You can avail of a loan facility in case of financial needs as per specified conditions.

    • If you get diagnosed with a specified critical illness, you have the option to surrender the plan.

    Minimum

    Maximum

    Entry Age

    40 Years

    80 Years

    Annual Premium Payout

    As per the minimum annuity instalment amount

    No Limit (As per BAUP)

    Premium Payment Term

    Single Pay Premium

    Premium Payment Frequency

    Monthly/ Quarterly/ Half-yearly/ Annually

    *BAUP: Board Approved Underwriting Policy

  2. SBI Life Retire SMART Plan 

    SBI offers another ULIP pension plan for NRIs as SBI Life Retire SMART Plan. 

    Key Features: 

    • The pension plan offers a guaranteed additional increase to the total sum invested up to 210%* of the annual premium once you have completed 15 years till the end of the term. (*Conditions apply)

    • In case of an untimely death of the policyholder, the nominee would receive the higher of the two - fund value as of the date of demise plus 1.5% fund value as terminal additions or 105% of the total premiums paid until death under the SBI Life Retire SMART Plan. 

    • The pension plan also offers tax benefits under U/S 80C and 10(10D) of the Income Tax Act.

    Eligibility Criteria

    Minimum

    Maximum

    Entry Age

    30 Years

    70 Years

    Investing Age

    80 Years

    Plan Type

    Regular Pay/ Limited Premium/ Single Premium

    Policy Term

    10 Years

    35 Years 

    Minimum Annual Premium Amount

    Regular Pay – Rs 24,000

    Limited Premium – RS 40,000

    Single-Premium – Rs 1 Lakh

    No Limit; as per BAUP

    Premium Payment Frequency

    Monthly/ Quarterly/ Half-yearly/ Annually/Single

  3. SBI Life Annuity Plus

    SBI Life Annuity Plus is an individual and non-linked plan helping you to enjoy your post-retirement life without any financial worries

    Key Features:

    • Regular Income: The policyholder is set to get regular income for life with the SBI Life Annuity Plus Plan or can ask for periodic income, whichever option is convenient for the plan holders. 

    • Annuity Options: The plan offers two annuity options. The first plan is for a single life covered and the second option is for a joint-life annuity. 

    • Tax Benefits: The plan offers tax benefits as per applicable tax laws.

    Eligibility Criteria 

    Minimum

    Maximum

    Entry Age

    40 Years

    80 Years

    Annual Annuity Payout

    Rs 12,000

    No Limit

    Premium Payment Frequency

    Monthly, Quarterly, Half Yearly, annually 

    Premium Amount

    To cover minimum annuity instalment

    No Limit; as per BAUP

  4. SBI Saral Retirement Saver Plan

    SBI’s Saral Retirement Save Plan offers reliable chances for retirees to secure their future. You can plan to build your retirement corpus with a life cover option through SBI Life Preferred Term Rider.

    Key Features:

    • Guaranteed Simple Revisionary Bonus: The plan offers a bonus for the first 5 years @ 2.50 for the first three years and then 2.75% for the next 2 years. 

    • Death Benefit: In the event of the policyholder’s death, the nominee would receive either of the two whichever is higher - total premiums paid up to date of death at an interest rate of 0.25% compounded annually plus bonus(simple reversionary bonus plus any terminal bonus), or 105% of total premiums received up to the date of death.

    Eligibility Criteria

    Minimum

    Maximum

    Entry Age

    18 Years

    Regular Pay – 60 years

    Single Pay – 65 years

    Investing Age

    40 Years

    70 Years

    Policy Term

    Regular Pay – 10 years

    Single Pay – 5 years

    40 Years

    Basic Sum Assured

    Rs 1 Lakh

    No Limit; as per BAUP

    Annualized Premium Amount

    Rs.7,500

    No Limit; as per BAUP

How Can an NRI Invest in These Schemes Under the NPS?

NRIs can invest in the National Pension Scheme through an online portal or visit your nearest SBI Branch. 

The documents required are: 

  • Age Proof

  • Address Proof

  • ID Proof

  • Income Proof

How Can NRI Apply for the SBI NRI Pension Plans?

You can follow this procedure to apply for the SBI NRI pension plans:

  • Get an NRI NPS Application Form from PFRDA, NPR Trust Website or your nearest SBI NRI Bank branch. 

  • Once the form has been submitted and verified by the bank, the bank will forward the application to Central Record Keeping Agency (CRA).

  • Deposit the initial cheque, and the Permanent Retirement Account Number will be generated. 

  • The PRAN number would be shared with the NRI Applicant.

In Conclusion

Selecting a pension plan especially when you are living abroad is a tough task and you need a specialist who can guide you through this process. State Bank of India has had a long relationship of trust and confidence with their customer. 

Visit your nearest SBI NRI branch and allow the bank to pick a plan which would suit your needs and objective allowing you to lead a happy and prosperous retired life. 

FAQ's

  • Q. Can I take a loan against the SBI pension plan?

    A. You need to check whether a loan facility is available for the pension plan that you have chosen with SBI. You cannot take loans against all pension plans.
  • Q. Can NRIs open an NPS Account?

    A. Yes, NRI can open an NPS account. OCI (Overseas Citizens of India) and PIO (Personal of Indian Origin) are not eligible to open an account under the National Pension Scheme
  • Q. Does the SBI NPS offer tax benefits to NRIs? 

    A. Yes, Investment income up to Rs 1.5 Lakhs is tax-deductible for NRIs.
  • Q. Can I open multiple NPS accounts? 

    A. No, the opening of multiple NPS accounts for a single person is not possible. They can choose to invest some amount in Atal Pension Yojana. 
  • Q. Can I open a joint NPS account with my spouse or family? 

    A. No, an NPS account can only be opened by an individual and not a family.
Written By: PolicyBazaar - Updated: 24 January 2022
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