After decades of working and saving, the challenge flips: it is no longer about building a corpus, it is about making that corpus last. LIC has two products specifically designed for this - Jeevan Akshay VII (Plan 857) for immediate pension, and New Jeevan Shanti (Plan 758) for deferred pension.

What Retirees Actually Need

  • ▸Monthly income that does not depend on market performance
  • ▸Capital that returns to family on death (not lost)
  • ▸No management effort - automatic pension every month/quarter
  • ▸Tax-efficient structure

Option 1 - LIC Jeevan Akshay VII (Plan 857) - Immediate Annuity

You invest a lump sum (minimum Rs 1 lakh) and LIC starts paying you pension from the very next month. The annuity rate is fixed at purchase and never changes - it does not go up or down with markets or RBI rate changes.

| Option | Description | Best For | |---|---|---| | Option A | Pension for life, nothing returned on death | Maximum monthly pension | | Option B | Pension for life + full corpus returned to nominee | Balanced - most popular | | Option D | Pension guaranteed 10 years then for life | Couple with young children | | Option G | Pension increases 3% every year for life | Protection against inflation |

For a 60-year-old investing Rs 20 lakh in Option B, the approximate annual annuity is Rs 1.3 - 1.4 lakh (Rs 11,000 - 12,000/month), and the full Rs 20 lakh is returned to the nominee on death.

Option 2 - LIC New Jeevan Shanti (Plan 758) - Deferred Annuity

If you are 50 and want pension from age 60, you invest now and defer for 10 years. The longer you defer, the higher your annuity rate. This is ideal for someone who has VRS proceeds but does not need immediate pension.

Tax Treatment of LIC Annuity

Annuity received from LIC is taxable as income under 'Income from Other Sources.' However, if you have no other significant income and your total stays below the basic exemption limit (Rs 3 lakh for seniors, Rs 5 lakh for super-seniors above 80), there is no tax liability. Standard deduction applies.

Call Ajay Kumar Poddar at 9415313434 for a pension planning session. He will show you exact numbers based on your corpus amount, age, and family requirements.