Planning for retirement is one of the most important financial steps in life. After working hard for years, everyone wants to live a peaceful and financially independent life in old age. For this, a stable monthly income is essential. In India, the Life Insurance Corporation of India (LIC) has been one of the most trusted names for pension and retirement plans.
However, with multiple options available, many people get confused about which LIC retirement plan can give them a regular income of Rs. 1 lakh. In this article, we will explain everything and help you choose the best LIC retirement plan to get Rs. 1 lakh as regular income.
What Is a Retirement or Pension Plan?
A retirement or pension plan is a financial product that provides a regular income after retirement. In most cases, you must invest a lump sum or pay premiums for a few years. After this period, LIC starts giving you monthly, quarterly, half-yearly, or annual income as per your choice. This income is called an annuity.
LIC offers two types of pension plans:
- Immediate Annuity Plan – Starts pension immediately after lump sum investment.
- Deferred Annuity Plan – Pension starts after a few years and is suitable for working people.
Let us now understand the LIC pension plan that can provide a regular income of Rs. 1 lakh.
LIC Jeevan Akshay – VII: Best for Immediate Rs. 1 Lakh Monthly Pension
LIC Jeevan Akshay- VII is the most popular LIC plan for guaranteed regular income. This is an Immediate Annuity Plan, which means your pension starts right after you invest the amount.
Key Highlights of LIC Jeevan Akshay – VII:
- Entry Age: 30 to 85 years
- Minimum Purchase Price: Rs. 1 lakh (offline), Rs. 1.5 lakh (online)
- Pension Modes: Monthly, Quarterly, Half-Yearly, Annually
- Pension Amount: Depends on the purchase price and annuity option
- Loan Facility: Available after 3 months
There are 10 different annuity options under this plan. But for those who want a fixed pension of Rs. 1 lakh per month, the most suitable options are:
- Option F: Annuity for life with return of purchase price on death
- Option J: Joint life annuity with return of purchase price on the last survivor’s death
These options provide safety for your dependents as well.
How Much You Need to Invest to Get Rs. 1 Lakh Every Month?
LIC declares annuity rates based on age and mode of annuity. Suppose you are 60 years old and want Rs. 1 lakh monthly for life with a return of purchase price on death; LIC may offer an annual annuity rate of around 6.5%. That means to get Rs. 12 lakh per year (Rs. 1 lakh/month), you may need to invest approx:
Rs. 1.85 crore – Rs. 1.9 crore
This is the purchase price you pay once and enjoy a pension for life.
Note: The exact amount can vary depending on age, annuity option, and LIC’s declared annuity rate. Always ask for an annuity quotation from LIC before investing.
Benefits of LIC Jeevan Akshay – VII for High Pensioners
- Lifetime Guarantee: Fixed pension for life, not affected by market risks.
- Flexible Options: Choose from 10 annuity types.
- Joint Life Benefit: Ideal for couples who want pension till both partners’ lifetime.
- Tax-Free Death Benefit: If you choose the return of purchase price, your nominee gets back the invested amount.
- Loan Available: You can get a loan against this policy if needed after 3 months.
LIC Saral Pension Plan: Simpler Alternative for Rs. 1 Lakh Income
LIC’s Saral Pension Plan is another good choice if you want a simpler, standard pension option. It is also an Immediate Annuity Plan launched as per IRDAI’s standard product rules.
Key Features:
- Entry Age: 40 to 80 years
- Minimum Purchase Price: Rs. 1 lakh
- Annuity Options:
- Life Annuity
- Joint life annuity
- Loan Available: After 6 months
- Return of Purchase Price: Available on death
While Saral Pension has fewer features than Jeevan Akshay – VII, it is transparent and easy to understand.
To get Rs. 1 lakh monthly from Saral Pension, the required investment will be slightly higher due to lower annuity rates than Jeevan Akshay.
LIC New Jeevan Shanti: Best Deferred Annuity Plan for Younger Investors
For people aged 30 to 50 who want to build a retirement fund and start a pension after 10–20 years, LIC New Jeevan Shanti is the best choice.
Features of LIC New Jeevan Shanti:
- Entry Age: 30 to 79 years
- Policy Term: Choose your deferment period (1 to 12 years)
- Pension Starts Later: Ideal for long-term planning
- Guaranteed Income: Pension amount is guaranteed at the time of buying
- Loan Available: After 1 year
If you invest early and choose a more extended deferment period, you can get a higher annuity for the same amount.
For example, a 40-year-old investing Rs. 1 crore and choosing to defer for 15 years can expect a monthly pension close to Rs. 1 lakh from age 55–60, depending on annuity rates.
Points to Remember Before Choosing LIC Pension Plans
- One-Time Investment: LIC retirement plans mostly need a lump sum amount.
- No Market Risk: Annuity rates are fixed and safe from stock market ups and downs.
- No Change in Pension: Once the pension amount is fixed, it remains the same for life.
- Tax on Pension: Monthly pension is taxable as per income slab.
- No Surrender: Most plans can’t be surrendered easily after a few years.
Ideal Plan Selection Based on Your Age and Goals
Age Group Ideal Plan Investment Type Best Option for Rs. 1 lakh Income
30–45 New Jeevan Shanti Deferred Start pension at 60
46–60 Jeevan Akshay – VII Immediate Pension starts now
60+ Jeevan Akshay – VII or Saral Pension Immediate Joint life + return of the price
Final Thoughts on Choosing the Best LIC Pension Plan for Rs. 1 Lakh Income
LIC Jeevan Akshay- VII is the best LIC plan today if you have a lump sum retirement corpus and want peace of mind with Rs. 1 lakh regular monthly income. LIC New Jeevan Shanti gives guaranteed future income with better returns for younger individuals building their retirement base.
Always compare annuity rates, check updated policy brochures, and request a quote from LIC before investing. You can also use LIC’s annuity calculator or consult a trusted LIC agent for exact figures.
