LIC Smart Pension Plan (Plan No. 879): Invest Once, Get Guaranteed Monthly Pension for Life

By Kaushik Brahmakshatriya

Published On 27 September 2026.

LIC Smart Pension Plan

Planning for retirement often feels overwhelming, especially when you want a fixed monthly income without market risk. The LIC Smart Pension Plan (Plan No. 879) is a single-premium immediate annuity scheme launched by LIC that lets you invest once and start receiving guaranteed pension right away. In this post, we’ll break down how the plan works, its key features, and how much pension you can expect.

What Is LIC Smart Pension Plan?

The LIC Smart Pension Plan is a non-participating, non-linked immediate annuity plan (UIN: 512N386V01) launched by LIC in February 2025. Unlike traditional pension policies where you pay premiums for years before benefits start, this plan works differently — you pay a single lump sum, and your pension begins immediately.It offers both Single Life and Joint Life annuity options, so you can secure income for yourself alone or ensure your spouse continues receiving pension after you. The minimum purchase price starts at ₹1,00,000, making it accessible to a wide range of investors, from retirees to NPS subscribers looking to convert their corpus into regular income.

Key Features of LIC Smart Pension Plan

–Single Premium, Immediate Payout: One-time investment; pension starts right after purchase.

-Flexible Payout Modes: Choose monthly, quarterly, half-yearly, or yearly payouts.

-Entry Age: Minimum 18 years; maximum age ranges from 65 to 100 years depending on the option chosen.

-Multiple Annuity Options: 14+ options including life annuity, annuity certain for fixed years, and more.

-Liquidity Options: Partial/full withdrawal and loan facility available under certain options.

-NPS Integration: Special provision for NPS subscribers to buy immediate annuity.

-Death Benefit Choices: Lump sum, annuitisation, or installment payout for nominees.

How Much Pension Can You Get?

The exact pension amount depends on your age, gender, annuity option, and purchase price, since annuity rates vary by these factors. Here’s an illustrative estimate (actual figures will differ — always check LIC’s official calculator before investing):

*Figures are indicative only and not official LIC rates. To get close to ₹25,000/month, a purchase price in the ₹38–42 lakh range is typically required, depending on your chosen option.

Who Should Consider This Plan?

The LIC Smart Pension Plan suits retirees with a lump sum from PF, gratuity, or NPS who want predictable, risk-free income rather than market-linked returns. It also works well for people planning early retirement income for a spouse through the Joint Life option. If you prefer flexibility and are comfortable locking in a lump sum for guaranteed returns, this plan is worth evaluating alongside other annuity products before making a final decision.

FAQs (Frequently Asked Questions)

Q1. Can I withdraw my invested amount later?

Yes, under specific annuity options, partial or full withdrawal is allowed as per policy terms.

Q2. Is the pension amount fixed for life?

Yes, once the annuity rate is locked at purchase, it doesn’t change during the policy term.

Q3. Can I buy this plan jointly with my spouse?

Yes, the Joint Life option allows pension continuation for a family member after the policyholder’s demise.

Q4. Is there a maximum investment limit?

There’s no upper cap; higher purchase amounts may also get incentive-based better rates.

Conclusion

The LIC Smart Pension Plan is a solid option for anyone seeking guaranteed, worry-free retirement income through a one-time investment. With flexible payout modes and multiple annuity choices, it caters to varied financial needs. Before investing, compare annuity rates using LIC’s official calculator and consult a financial advisor to choose the option best suited to your goals.

Disclaimer :

This article is for informational purposes only and does not constitute financial advice. Pension amounts are illustrative estimates. Please verify current annuity rates directly with LIC before making any investment decision.