SBI Life – Smart Annuity Plus Plan provides individuals with an option to pay once and achieve financial independence by receiving a pension at pre-determined intervals
SBI Life – Smart Annuity Plus Plan provides individuals with an option to pay once and achieve financial independence by receiving a pension at pre-determined intervals. However, getting adequate monthly income from this scheme comes at a cost. Let’s see how much amount a person, who has reached the retirement age of 60 years, will need to pay to get Rs 1 lakh/month and Rs 50,000/month under various options provided in this scheme.
But first, let’s understand this scheme in brief.
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According to information on SBI Life’s website, ‘SBI Life – Smart Annuity Plus’ is an individual, non-linked, non-participating, general annuity product. The website says that the scheme can help individuals “achieve a stress-free retirement with regular guaranteed income”.
This annuity plan offers both deferred and immediate annuity options. The scheme also has joint life options. Individuals can subscribe to immediate annuity from the age of 30 by choosing a range of annuity options. A deferred annuity is available from the age of 45.
Money required for Rs 1 lakh per month from age 60
SBI Life website provides a calculator on its website to help individuals get an idea of how much money they will have to pay to get their desired monthly, quarterly, half-yearly or annual annuity. The following is what the calculator shows for Rs 1 lakh/month under immediate annuity purchased at age 60.
Life annuity: The calculator shows a 60-year-old person will need to pay Rs 1,55,92,516 to get Rs 1 lakh/month from the scheme under this option.
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Life annuity with return of purchase price: The calculator shows a 60-year-old person will need to pay Rs 1,88,32,392 to get Rs 1 lakh/month from the scheme under this option.
Life annuity with return of balance purchase price: The calculator shows a 60-year-old person will need to pay Rs 1,60,40,636 to get Rs 1 lakh/month from the scheme under this option.
Life annuity with annual simple increase of 3% per annum: The calculator shows a 60-year-old person will need to pay Rs 2,04,11,635 under this option.
Life annuity with annual simple increase of 5% per annum: The calculator shows a 60-year-old person will need to pay Rs 2,35,61,751 under this option.
Life annuity with certain period of 10 years: The calculator shows a 60-year-old person will need to pay Rs 1,57,77,018 to get Rs 1 lakh/month from the scheme under this option.
Life annuity with certain period of 20 years: The calculator shows a 60-year-old person will need to pay Rs 1,62,38,160 to get Rs 1 lakh/month from the scheme under this option.
Life annuity with annual compound increase of 3% per annum: The calculator shows a 60-year-old person will need to pay Rs 2,20,83,180 under this option.
Life annuity with annual compound increase of 5% per annum: The calculator shows a 60-year-old person will need to pay Rs 2,90,27,676 under this option.
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Money required for Rs 50,000 per month from age 60
Life annuity: The calculator shows a 60-year-old person will need to pay Rs 78,06,401 to get Rs 50000/month from the scheme under this option.
Life annuity with return of purchase price: The calculator shows a 60-year-old person will need to pay Rs 94,30,997 to get Rs 50000/month from the scheme under this option.
Life annuity with return of balance purchase price: The calculator shows a 60-year-old person will need to pay Rs 80,31,053 to get Rs 50000/month from the scheme under this option.
Life annuity with annual simple increase of 3% per annum: The calculator shows a 60-year-old person will need to pay Rs 1,02,05,817 under this option.
Life annuity with annual simple increase of 5% per annum: The calculator shows a 60-year-old person will need to pay Rs 1,17,80,876 under this option.
Life annuity with certain period of 10 years: The calculator shows a 60-year-old person will need to pay Rs 78,98,894 to get Rs 50000/month from the scheme under this option.
Life annuity with certain period of 20 years: The calculator shows a 60-year-old person will need to pay Rs 81,30,081 to get Rs 50000/month from the scheme under this option.
Life annuity with annual compound increase of 3% per annum: The calculator shows a 60-year-old person will need to pay Rs 1,10,41,590 under this option.
Life annuity with annual compound increase of 5% per annum: The calculator shows a 60-year-old person will need to pay Rs 1,45,13,788 under this option.
Disclaimer: The above content is for informational purposes only and is based on information available on the SBI Life website. Please read the policy document carefully and consult a retirement advisor before purchasing any annuity plan to support your post-retirement life.
