Pension Plan
Retire with dignity — build your retirement corpus today for a guaranteed monthly income tomorrow.
About Pension Plan
LIC's Pension Plans (Jeevan Akshay VII, New Jeevan Shanti, Jeevan Nidhi) are specifically designed to help individuals create a secure financial corpus for their retirement years. In India, most people in the private sector do not have a pension from their employer. LIC's pension plans fill this critical gap by providing a structured way to accumulate savings during your working years and then convert them into a guaranteed monthly annuity (pension) post-retirement. With increasing life expectancy, retirement can last 20-30 years. Having a dedicated pension plan ensures you never outlive your money and can maintain your lifestyle without being financially dependent on children or relatives.
Quick Benefits
- Guaranteed monthly annuity post-retirement
- Life cover during accumulation phase
- Flexible vesting age (55-70 years)
- Multiple annuity options
- Tax benefits under Section 80CCC
- Death benefit during policy term
Who Should Take This Plan?
Private sector employees who do not receive a government pension.
Self-employed professionals and entrepreneurs planning for retirement income.
Anyone above 35 who wants to start building a serious retirement corpus.
Young professionals who want to leverage the power of compounding for retirement.
People who want guaranteed monthly income post-retirement without market risk.
Those who want to be financially independent in their senior years.
Key Features
Accumulation Phase
During the working years, your premiums accumulate with bonuses to build a substantial retirement corpus.
Guaranteed Annuity
Post-retirement, receive a guaranteed monthly, quarterly, half-yearly, or annual pension for life.
Multiple Annuity Options
Choose from life annuity, joint life annuity, annuity with return of purchase price, and more options.
Inflation Protection
Certain annuity options include annual increase in pension to protect against inflation impact.
Tax Efficiency
Contributions to pension plans get special tax deduction under Section 80CCC (within overall 80C limit).
Financial Independence
Retire without depending on children or relatives for monthly expenses — maintain your dignity.
Save Taxes While You Protect
Contributions to LIC Pension Plans are eligible for deduction under Section 80CCC, which falls under the overall limit of Section 80C (₹1.5 lakh). Additionally, up to 1/3 of the corpus can be commuted (withdrawn) tax-free at retirement. The annuity (monthly pension) received is taxable as income, but by planning the corpus size correctly, the tax impact can be significantly minimized.
Why This Plan Stands Out
Vs EPF/PPF
Pension plans provide guaranteed lifetime income; EPF/PPF give only a lump sum with no ongoing income.
Vs Mutual Funds
Pension plans offer guaranteed income without market volatility risk; mutual funds don't guarantee returns.
Vs FD for Retirement
FDs can be depleted; a pension plan guarantees income for your entire lifetime no matter how long you live.
Dedicated Retirement Product
Purpose-built for retirement with features specifically designed for the retirement life stage.
Life Cover Bonus
Unlike NPS or other pension products, LIC plans include life cover during the accumulation phase.
Government-backed Certainty
LIC's sovereign backing ensures your retirement money is absolutely safe and guaranteed.
Interested in Pension Plan?
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