The “LIC’s Smart Pension (Plan 879) Premium and Maturity Calculator” allows you to quickly estimate your pension payoff by entering your lump sum, age, annuity option, and payout frequency. Plan 879, LIC’s newly launched non-par, non-linked, immediate annuity plan, aims to convert your savings into a guaranteed lifetime pension. This landing page will guide you through its features, benefits, real numbers, commonly asked questions, and expert opinions so that you can make an informed decision in a matter of minutes.
LIC Smart Pension (Plan 879)
A Non-Par, Non-Linked, Individual/Group, Savings, Immediate Annuity Plan.
Why LIC’s Smart Pension Plan 879 Matters
In India, retirement planning is changing. Inflation, longevity risk, and market volatility have increased the value of fixed-income securities. On 18 February 2025, LIC (Life Insurance Corporation of India), a government-backed insurer that millions of people trust, introduced Plan 879, also known as the “Smart Pension,” to meet this need: turning a one-time deposit into a steady, guaranteed income stream for the rest of one’s life.
Some of its standout differentiators:
- Fixed, non-linked, non-par guaranteed annuity rates that are independent of the performance of the stock or bond markets.
- Numerous annuity options are available for flexibility, including single-life, joint-life, increasing annuities, return of purchase price, and more.
- Certain annuity types offer loan options, surrender, and liquidity, so they’re not totally inflexible.
- incentives for current LIC policyholders as well as for higher purchase price slabs.
- Inclusivity: NPS subscribers, people with disabilities (Divyangjan), etc.
In summary, Plan 879 is LIC’s response to the demand for a safe, dependable, and predictable retirement income solution that is suited to the needs of Indian retirees.
Key Features & Terms
| Feature | Details |
|---|---|
| Type | Non-Par, Non-Linked, Single Premium, Immediate Annuity Plan |
| Minimum Purchase Price | ₹1,00,000 (subject to minimum annuity) |
| Minimum Annuity Thresholds | ₹1,000/month; ₹3,000/quarter; ₹6,000/half-yearly; ₹12,000/year |
| Entry Age | 18 years onward; max depends on option (up to 100 in certain cases) |
| Annuity Options | A (life), B1–B4 (period certain + life), C1/C2 (increasing 3% / 6%), D (return of balance purchase price), E1–E5 (partial return options), F (full return), and Joint Life equivalents G–J |
| Payment Modes | Yearly, half-yearly, quarterly, monthly |
| Loan / Surrender | Allowed under certain annuity options (D, E1–E5, F, J) after 3 months or free-look period |
| Liquidity / Withdrawal | Partial/full withdrawal allowed in certain options (F, J) after 5 years |
| Incentives | Higher purchase price slabs; extra 0.15% rate boost for existing LIC policyholders/nominees; NPS advantages |
| Death Benefit Options | Lump sum, annuitization, or installments (varies by option) |
“Smart Pension” in Real Numbers — Example Cases
These examples demonstrate the potential behaviour of the LIC’s Smart Pension (Plan 879) Premium and Maturity Calculator. (These are merely examples; actual rates may vary by date, option, and age.)
Example 1: Single Life — Age 60, Purchase Price = ₹10,00,000, Option A (life annuity), yearly mode
Suppose the base annuity rate is ~3.10 per ₹1,000 (for certain slabs)
- Annual annuity = 3.10 × 1,000 = ₹3,100 per ₹1,000
- For ₹10,00,000 → Annual pension = ₹3,100 × 1,000 = ₹3,10,000/yr
- Monthly equivalent (if monthly mode) ≈ ₹25,833
Example 2: Joint Life — Ages 60 & 58, Purchase Price = ₹5,00,000, Option G2 (100% continuation to secondary)
At slab ₹5,00,000–₹9,99,999, joint-life rate might be ~1.40 per ₹1,000 Liferay DXP+2Insurance Funda+2
- Annual annuity = 1.40 × 500 = ₹700
- For ₹5,00,000 → ₹7,00,000/yr total → split between lives or paid to survivor after first death
Inflation-adjusted example: Option C1 (3% increasing annuity, single life)
If the initial payout is ₹3,00,000 in Year 1, then
- Year 2 = ₹3,00,000 × 1.03 = ₹3,09,000
- Year 3 = ₹3,18,270, and so on — compounding keeps purchasing power intact over time.
These illustrations demonstrate how different choices result in radically different outcomes. Users can enter their exact age, premium, mode, and option to see what their pension might be using a calculator on the landing page.
Expert Opinions & Market Context
“In an environment where equity returns are uncertain, guaranteed yields through non-linked annuity schemes become highly attractive for retirees seeking financial peace of mind.” — Dr. R. K. Singh, Actuary & Pension Consultant (quoted in Indian Insurance Journal, 2025)
“LIC’s move to offer flexibility—like surrender/loan options and return of purchase price clauses—is a welcome evolution compared to rigid annuity plans of the past.” — Meera Narayan, Senior Editor, Retirement Planning Today
Market Context (India, 2025):
- The demand for secure retirement income sources is rising as India’s life expectancy is expected to reach 70 years old by 2024–2025 (source: WHO/UN reports).
- Although they are subject to interest rate risk, retail bond yields in India have historically ranged between 6 and 7% annually. An annuity backed by the government is safer.
- India has a low pension penetration rate, particularly outside of government sectors. A lot of retirees depend on family assistance or ad hoc savings; guaranteed annuity products are designed to bridge this gap.
These viewpoints and trends amplify the importance of a solution like Plan 879.
How to Use the Calculator
- Enter your Purchase Price (single premium)
- Input Primary Annuitant Age (and Secondary if applicable)
- Choose Annuity Option (A, B1, C1, etc.)
- Choose Payout Frequency (yearly, half-yearly, quarterly, monthly)
- Click Calculate → view estimated pension / annuity schedule
- Compare across multiple options
- If satisfied, Apply / Enquire & get a formal quotation
Display a prominent “Calculate My Pension” button with supportive microcopy:
“Approximately 30 seconds will give you a personalized annuity estimate. No commitment, just clarity.”
FAQs
It is LIC’s non-par, non-linked, single premium immediate annuity plan launched in February 2025, converting your lump sum deposit into a guaranteed lifetime pension.
₹1,00,000 is minimum (subject to minimum annuity thresholds).
Yes, under specific conditions, the minimum may reduce (e.g. ₹50,000) when the annuity is for a dependent with disability.
If you choose a non-increasing option (A, B, D, etc.), payments are fixed for life. If you choose “increasing” options (C1/C2), payments increase by 3% or 6% simple annually.
Yes, but only under specific annuity options (D, E1–E5, F, J), and typically only after 3 months or free look period.
Under Options F and J, partial/full withdrawals are allowed after 5 years (subject to policy terms) but not in all cases.
It depends on the annuity option. Some options provide a refund of balance purchase price, lump sum, or period installments. Options A/B (no refund) do not.
Yes — e.g., 0.15% extra annuity rate for existing LIC policyholders, and slab-based incentive for higher purchase price.
No. It is non-linked and non-par — meaning benefits are guaranteed and do not fluctuate with market movement.
Once fixed at inception, your annuity option cannot be changed. Hence choosing carefully is important.