In February 2025, Life Insurance Corporation of India (LIC) introduced the LIC Smart Pension Plan as a brand new retirement-oriented product. It is basically a “non-linked, non-participating, immediate-annuity” plan where you pay a lump sum amount as a premium once and start getting the guaranteed pension (annuity) right away, instead of investing in market-linked instruments. The scheme is open not only to individuals but also to joint applicants (e.g. spouses or other family members) — thus, flexibility is provided to secure retirement income either for one person or as a family arrangement.
Who Can Invest & Entry Conditions
The minimum age requirement to join the Smart Pension Plan is 18 years. Depending on the selected annuity option, the upper limit for entry age can be 65 to 100 years. To qualify for the scheme, the lowest investment (purchase price) of ₹1,00,000 (one lakh rupees) is necessary. The maximum investment amount is not specified; however, larger investments are possible only after compliance with LIC’s underwriting policy.
Payment And Annuity Options
You can post a one-time premium and select a suitable annuity payment plan from the monthly, quarterly, half-yearly, or yearly payouts according to your financial situation and preferences. ( There exist two main types of annuities “Single Life Annuity” (pays to the owner for his/her lifetime) and “Joint Life Annuity” (pays to two persons —usually spouses or other family members—and continues with the survivor). Besides, a range of sub-options are available within these types: lifetime annuity, annuity certain (fixed for a period then for life), increasing annuity (annuity amount increases annually by a fixed rate), or return-of-purchase-price options. The minimum annuity payout under Smart Pension is set at ₹1,000 per month (if you choose monthly mode) or ₹3,000 per quarter, ₹6,000 per half-year, or ₹12,000 per year regardless of the frequency you selected.
Benefits: Stability, Flexibility, and Security
Stability is one of the biggest attractions of Smart Pension: because the program is non-linked and non-participating, annuity payments are fixed and guaranteed—never impacted by stock market volatility. That makes it suitable for investors who are risk-averse and prefer the safe, recurring investment during their post-retirement phase, instead of the risky stocks.
Flexibility is a plus as well. You are allowed to determine the annuity type (single or joint), payout frequency, and (in most variants) additional features such as increasing annuity or return-of-purchase-price. Joint-life annuity for families is a good option as it guarantees the support of the other spouse or beneficiary even in the case of one person’s death.
Furthermore, the strategy presents some advantages: people who possess LIC policies, or their nominees/beneficiaries if deceased policyholders, might receive higher annuity rates. In addition, liquidity options are provided under particular conditions — partial or full withdrawals may be allowed, depending on the chosen annuity option.
What To Know Before You Invest
It should be noted that once you have decided on an annuity option and payout frequency at the time of purchase, you usually cannot make a change. For this reason, potential policy-holders should very thoroughly evaluate their financial needs and future plans before making their choice. Besides, since it is a fixed annuity, there will be no bonuses or profit-sharing — returns are predetermined at the very beginning and continue to be the same throughout the entire deal.
The amount of the regular pension varies a lot and depends on the amount invested and the chosen annuity. In general, larger investments will result in larger monthly or periodic payouts.
Also Read: New Pension Rules 2026: Assured Monthly Pension Brings Stability To Millions Of Families