Pension Plan : Financial security after retirement is guaranteed through pension plan. It can also be called support for old age, which makes senior citizens self-reliant.
The Government of India is running many pension schemes. Insurance companies are also currently offering different types of pension plans. SBI Life’s Smart Annuity Plan is also included in this list.
About the plan
It is a non-participating annuity pension plan, offering the option of both deferred and immediate plans. Along with this, joint life option is also available. The minimum investment age for deferred annuity is 45 years and for immediate annuity is 30 years. In which premium is paid. After retirement, one gets the benefit of pension in the form of annuity payout.
Investors can opt for half yearly or annual or monthly pension. Many annuity options are provided under the plan. The annuity rate is greater than the amount of premium paid. Tax exemption is also available under Section 80C and Section 10 (10A) of Income Tax. A free look period of 15 days is also available in this. Besides, the facility of Accidental Death Benefit Rider would also be available. The pension amount depends on investment. You can also avail pension of Rs 1 lakh under the plan.
How much will have to be invested for one lakh rupees?
If you buy immediate annuity at the age of 60, you will have to invest Rs 1,55,92,516 for a monthly pension of Rs 1 lakh. To buy a life annuity with the return of purchase price, a 60-year-old person will have to invest Rs 1,88,32,392. On taking life annuity with return of balance purchase price, one will have to pay Rs 1,60,40,636.
By taking life annuity for 10 years, a 60 year old person will have to invest Rs 1,57,77,018. If you take life annuity for 20 years, you will have to deposit Rs 1,62,38,160. At 3% compounded growth annually, one will have to pay Rs 2,20,83,180 and at 5% compounded growth, one will have to pay Rs 2,90,27,676. Other annuity options are also available. Let us tell you that under the plan, you can avail the benefit of monthly pension of at least Rs 200.
(Disclaimer: The purpose of this article is to share general information only. Rightsofemployees.com does not recommend investing in any plan or scheme.)
