With the help of annuity plans offered by various Annuity Service Providers (ASPs) in India, individuals can comfortably plan for their post-retirement life.
With the help of annuity plans offered by various Annuity Service Providers (ASPs) in India, individuals can comfortably plan for their post-retirement life. For an assured monthly income, individuals need to buy an annuity plan from any ASP against a lump sum.
The annuity rates currently offered by various ASPs vary from as low as 5.44% to as high as 9.24%.
In its ‘Pension Bulletin’ for January 2023, the Pension Fund Regulatory and Development Authority (PFRDA) shared the various annuity rates offered by ASPs in India.
The data shows that for a purchase price of Rs 1 crore, an individual can get a monthly pension of Rs 70,086 at 8.41% from SBI Life Insurance under the “Annuity for Life” without Return of Purchase Price plan. Under Annuity for Life With Return of Purchase price, SBI life is offering up to Rs 59,452 for individuals and Rs 58,980 per month for joint life at a 7.08% rate of return.
Annuity Rates and Pension Amount for Rs 1 crore
Similarly, for a lump sum purchase price of Rs 1 crore, an individual can get a monthly pension of up to Rs 69,960 at 8.40% rate of return from LIC of India under an Annuity for Life Without Return of Purchase Price plan. Under Annuity for Life With Return of Purchase price, LIC is offering up to Rs 50,325 for individuals and Rs 50,240 per month for joint life at 6.03% rate of return.
At the rate of 9.24%, Shriram Life Insurance is offering the highest rate of returns compared to other ASPs under “Annuity for Life” without the Return of Purchase Price plan. The lowest rate of return of 5.44% is offered by Star Union Dai-ichi Life Insurance under “Annuity for Life” with Return of Purchase Price Plan.
With HDFC Life Insurance, an individual can get a monthly pension of Rs 73,200 at 8.78% by buying an Annuity for Life Without Return of Purchase Price Plan for Rs 1 crore. HDFC Life is also offering a rate of return of 7% and Rs 58,320 monthly pension under Annuity for Life With Return of Purchase Price Plan.
(The above content is for information purposes only, based on data in PFRDA’s Pension Bulletin. The rates mentioned are as on 27.02.2023. If planning to buy an annuity plan, you should verify the current rates with the ASP and also consult a retirement advisor for best advice.)
