Retirement planning is the conversation I have most often with clients in their 45s and 50s who are approaching retirement but have not yet secured a guaranteed income stream. LIC New Jeevan Shanti (Plan 758) is the plan I recommend most frequently for this need.

New Jeevan Shanti is a single-premium annuity plan. You pay a one-time lump sum (the purchase price) to LIC, and LIC pays you a guaranteed pension, monthly, quarterly, half-yearly, or annually, for the rest of your life. The pension amount is fixed at the time of purchase and never changes, regardless of market conditions or interest rate movements. This predictability is what makes it so valuable for retirees.

Key Features

| Feature | Details | |---|---| | Plan No | 758 | | Type | Single premium deferred or immediate annuity | | Entry age | 30 to 79 years | | Minimum purchase price | Rs 1,50,000 | | Deferment period | 1 to 12 years (or immediate) | | Annuity modes | Monthly, quarterly, half-yearly, yearly | | Loan facility | Available after 1 year from vesting | | Surrender | Allowed after 3 months from purchase |

The plan has two variants: Immediate Annuity (pension starts within one month of purchase) and Deferred Annuity (pension starts after a chosen deferment period of 1 to 12 years). The core benefit of deferring: the longer you wait before the pension starts, the higher your annuity rate.

As of 2026, the annuity rate for a 60-year-old choosing the 'life annuity with return of purchase price' option is approximately Rs 585 to Rs 620 per Rs 1 lakh purchase price per year. This means if you invest Rs 20 lakh, you receive approximately Rs 1.17 lakh to Rs 1.24 lakh per year for life, around Rs 10,000 per month, and your family receives the full Rs 20 lakh back after your passing.

How Deferment Increases Your Pension

Consider a 55-year-old investing Rs 15 lakh. With zero deferment (immediate annuity), annual pension is approximately Rs 92,000. With 5-year deferment, annual pension increases to approximately Rs 1,24,000. With 10-year deferment, approximately Rs 1,55,000 per year.

There are multiple annuity options. The three I recommend most often: first, 'Annuity for Life Only' (maximum pension, no return of purchase price); second, 'Life Annuity with Return of Purchase Price', you receive pension for life and your nominee gets the principal back; third, 'Joint Life Annuity', both you and your spouse receive pension as long as either of you is alive.

New Jeevan Shanti does not offer flexibility to withdraw the principal during your lifetime, once invested, it is locked. This is a deliberate feature, not a flaw: it ensures you never outlive your income. The pension is not market-linked and never reduces.

Who Should Choose New Jeevan Shanti?

  • ▸Aged 50 to 65 with a lump sum from EPF, gratuity, VRS proceeds, or FD maturity
  • ▸Want pension but not immediately, will need it 5 to 10 years later
  • ▸Prefer guaranteed fixed income over market-linked returns
  • ▸Couples who want a joint life annuity to protect the surviving spouse

New Jeevan Shanti vs Jeevan Akshay - Which to Choose?

Choose Jeevan Akshay (Plan 857) if you need pension starting immediately. Choose New Jeevan Shanti (Plan 758) if you can defer for 1 to 12 years and want a higher annuity rate. Both are LIC plans with the same government backing and claim settlement track record.

For someone approaching 58 to 65 with a lump sum from EPF, gratuity, or FD maturity, this plan converts savings into a permanent, government-backed income stream. Call 9415313434 to calculate the exact pension for your investment amount and chosen option.

Use our free Maturity Calculator to calculate your own numbers.