Retiring at 60 – Plan your pension now
Plan your pension now, call: 9972660645
Approaching retirement is a significant phase in life, especially when it comes to financial planning. For those aged 55 and planning to retire at 60, ensuring a stable and reliable source of income is paramount. The LIC Jeevan Shanti deferred pension plan offers an excellent opportunity for individuals to invest now and secure a guaranteed lifetime monthly income. By investing ₹1 crore today, you can guarantee a monthly income of ₹73,000 for life, with the return of investment to your nominee in case of any eventuality. This article will delve into the specifics of the LIC Jeevan Shanti plan, outlining its benefits and providing a practical example to illustrate its value.
LIC Jeevan Shanti is a non-linked, non-participating, single-premium annuity plan offering both immediate and deferred annuity options. For individuals planning to retire at age 60, the deferred annuity option is particularly attractive as it allows you to start receiving annuity payments after a deferment period, ensuring a steady income stream upon retirement.
Key Features of LIC Jeevan Shanti
- Single Premium Payment: Pay a lump-sum amount once and enjoy lifetime benefits.
- Deferred Annuity Option: Choose to defer annuity payments for a certain period (e.g., 4 years), ideal for those currently aged 55 planning to retire at 60.
- Guaranteed Monthly Income: Secure a fixed monthly income post-retirement.
- Return of Purchase Price: In the event of the annuitant’s death, the purchase price (initial investment) is returned to the nominee.
- Multiple Annuity Options: Offers flexibility with various annuity options to cater to different financial needs.
Why Choose LIC Jeevan Shanti for Retirement Planning?
Opting for LIC Jeevan Shanti provides several benefits:
- Financial Security: Ensures a guaranteed monthly income, removing the uncertainty of financial instability in retirement.
- Legacy Planning: The return of purchase price feature ensures that your investment benefits your family in case of any eventuality.
- Peace of Mind: With a reliable and trusted insurer like LIC, you can be assured of your investment’s safety and performance.
- Tax Benefits: The premiums paid may be eligible for tax deductions under Section 80C of the Income Tax Act.
Investment Strategy: From Age 55 to Retirement at 60
Let’s explore how investing ₹1 crore in LIC Jeevan Shanti at age 55, with a deferment period of 4 years, can secure a monthly income of ₹73,000 for life.
Step-by-Step Investment Example
- Initial Investment: ₹1 crore
- Age at Investment: 55 years
- Deferment Period: 4 years (payments start at age 60)
- Monthly Income: ₹73,000 for life
- Nominee: In the event of the annuitant’s death, the initial investment (₹1 crore) is returned to the nominee.
Scenario:
- Mr. Kumar, aged 55, decides to invest ₹1 crore in the LIC Jeevan Shanti deferred annuity plan.
- He opts for a deferment period of 4 years, planning to retire at 60.
- At age 60, Mr. Kumar starts receiving a guaranteed monthly income of ₹73,000 for the rest of his life.
- If Mr. Kumar passes away, the purchase price of ₹1 crore is returned to his nominee, ensuring his family’s financial security.
Calculating Returns and Benefits
To understand the financial benefits, let’s break down the investment and returns:
- Annuity Rate: Assuming the plan offers an annuity rate that ensures a monthly payout of ₹73,000 for a ₹1 crore investment,
- If annual income is chosen, then: ₹9,22,500/- per year. (Annual interest rate: 9.06%)
- Lifetime Benefit: Mr. Kumar continues to receive this income for life, providing a stable financial foundation.
Benefits of Deferred Annuity in LIC Jeevan Shanti
- Maximized Returns: Deferring the annuity increases the payout, allowing for higher monthly income.
- Tailored to Retirement Plans: Aligns with retirement age, ensuring income starts when needed most.
- Flexible Deferment Periods: Choose deferment period as per your retirement timeline.
How to Apply for LIC Jeevan Shanti
- Consultation: Speak with an LIC advisor to understand the plan details and suitability.
- Documentation: Complete necessary paperwork and provide required documents.
- Payment: Make the single premium payment of ₹1 crore plus GST.
- Confirmation: Receive policy documents and confirmation of the deferred annuity start date.
Real-Life Application: Mr. Kumar’s Retirement Plan
- Age: 55
- Retirement Age: 60
- Investment: ₹1 crore
- Plan Chosen: LIC Jeevan Shanti deferred annuity
- Interest rates may change as per the age of the proposer
- Deferment Period: 4 years
- Monthly Income Post-Retirement: ₹73,800 (8.7%) or
- Quarterly Income Post-Retirement: ₹2,23706 (8.79%) or
- Half yearly Income Post-Retirement: ₹452025 (8.88%) or
- Yearly Income Post-Retirement: ₹9,22,500 (9.6%)
Outcome:
- Mr. Kumar invests ₹1 crore at age 55.
- He opts for a deferment period of 4 years.
- At 60, he begins receiving ₹73,800 monthly for life.
- Upon his death, the nominee receives ₹1 crore, ensuring financial security for his family.
Planning for retirement is crucial, and choosing the right pension plan can make a significant difference. LIC Jeevan Shanti’s deferred annuity option is an excellent choice for those aged 55 planning to retire at 60. By investing ₹1 crore now, you can secure a guaranteed lifetime monthly income of ₹73,800, providing financial stability and peace of mind. Additionally, the return of purchase price ensures that your loved ones are financially protected in case of any eventuality. Take proactive steps today to secure a comfortable and worry-free retirement with LIC Jeevan Shanti.
Planning for retirement or looking to invest for regular income, call: 9972660645
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