LIC Smart Pension (Plan No. 879) is a modern, non-linked, non-participating annuity plan designed to deliver guaranteed retirement income with complete financial stability. This plan is ideal for individuals who want a predictable and secure pension without exposure to market fluctuations. With both immediate and deferred annuity options, Smart Pension allows policyholders to plan retirement income according to their current and future financial needs.
In today’s world, retirement planning has become more complex due to increasing life expectancy, rising medical costs, inflation, and uncertainty in traditional pension systems. Smart Pension addresses these concerns by converting a lump-sum investment into a steady and reliable income stream. Once the annuity begins, income is paid regularly as per the selected option, ensuring dignity, independence, and peace of mind throughout retirement.
Smart Pension is designed for individuals who prioritize safety and certainty over market-linked returns. Unlike mutual funds, ULIPs, or other investment products, Smart Pension offers guaranteed annuity rates fixed at the time of purchase. This means your retirement income is not affected by stock market volatility, interest rate changes, or economic downturns.
The plan is suitable for both retirees who need immediate income and younger individuals planning early for retirement through deferred annuity. With flexible annuity options, spouse protection features, and return-of-purchase-price choices, Smart Pension becomes a comprehensive retirement solution rather than just a pension plan.
✔ Guaranteed Income for Life: Eliminates the risk of outliving your savings.
✔ Financial Independence: Ensures regular income for daily expenses and healthcare needs.
✔ Peace of Mind: No need to monitor markets or manage investments.
✔ Family Security: Joint life and return-of-purchase-price options protect loved ones.
✔ Simple & Transparent: Clearly defined benefits with no hidden conditions.
Smart Pension offers a range of annuity options to suit different retirement goals:
✔ Single Life Annuity:
Pension payable as long as the annuitant lives.
✔ Joint Life Annuity:
Pension continues for spouse after the annuitant’s death.
✔ Annuity with Return of Purchase Price:
On death, original purchase price is returned to nominee.
✔ Guaranteed Period Annuity:
Pension guaranteed for a fixed number of years even if death occurs earlier.
The policyholder pays a lump-sum amount known as the purchase price. Based on age, annuity option, payout frequency, and deferment period (if any), LIC calculates the guaranteed annuity payable.
For immediate annuity, income starts right away. For deferred annuity, income begins after the chosen deferment period, usually with higher annuity due to accumulation.
Example 1: Immediate Annuity (Retiree)
Monthly Pension:
₹5,500 – ₹6,000 (approx)
Annual Pension: ₹66,000 – ₹72,000 (approx)
Pension continues for life irrespective of lifespan.
Example 2: Deferred Annuity (Early Planner)
Annual Pension after 15 years:
₹1,20,000 – ₹1,40,000 (approx)
Figures are indicative and depend on age, option selected, and LIC’s prevailing annuity rates.
Pension received from Smart Pension is treated as taxable income and taxed as per the individual’s income tax slab.
Despite taxation, retirees prefer this plan for its guaranteed income and capital safety.
✔ Retirees needing stable lifelong pension
✔ Individuals planning early retirement income
✔ Risk-averse investors avoiding market products
✔ Families seeking spouse protection & certainty
LIC Smart Pension – 879 is a comprehensive and dependable retirement solution that delivers guaranteed, risk-free income for life. With flexible annuity options, spouse protection features, and transparent benefits, it ensures financial dignity and independence during retirement years.
For individuals seeking stability, predictability, and peace of mind in retirement planning, Smart Pension stands out as a smart and trustworthy choice backed by LIC’s long-standing credibility.