ICICI Pru Gold Pension Savings Calculator

ICICI Pru Gold Pension Savings Calculator

ICICI Pru Gold Pension Savings (UIN: 105N202V03) is a participating (with-bonus), non-linked individual pension savings plan from ICICI Prudential Life. You pay premiums during your working years to build a retirement corpus; at vesting (your chosen retirement date), part of the corpus is paid to you as a tax-free lump sum and the rest is compulsorily used to buy an annuity that pays you a guaranteed income for life. This calculator projects your Assured Benefit, illustrative Cash Bonus, Total Vesting Benefit, tax-free commuted lump sum, and the resulting estimated pension.

How the Plan Works

• Premium Payment: choose Single Pay (one lump-sum premium), Limited Pay (pay for a fixed number of years, up to 15, shorter than the Policy Term), or Regular Pay (pay every year until vesting).
• Policy Term: the number of years from entry until vesting (retirement). Age at Entry plus Policy Term (your Vesting Age) must fall between 40 and 80.
• Vesting Benefit: on survival to the end of the Policy Term, you receive the Assured Benefit plus any Accumulating Cash Bonus declared by the company over the years.
• At Vesting: you can commute (withdraw as a tax-free lump sum) up to 60% of the Vesting Benefit. At least 40% must compulsorily be used to purchase an annuity from ICICI Prudential Life or another insurer, which then pays you a pension for life.

The Guaranteed Assured Benefit

$$\text{Assured Benefit} = 1.05 \times \text{Total Premiums Paid}$$

This 105% of Total Premiums Paid is the one figure in this plan that is guaranteed regardless of investment performance or bonus declarations - it acts as a floor under your Vesting Benefit.

The Illustrative Cash Bonus

Being a participating plan, ICICI Prudential Life may declare an annual Cash Bonus on top of the Assured Benefit, funded by the surplus in the participating fund. Because future bonus rates are never guaranteed, this calculator - like the insurer's own Benefit Illustration - shows what your corpus could look like at the two investment rates mandated by IRDAI for illustration purposes, 4% p.a. (conservative) and 8% p.a. (optimistic):

$$FV = P \times \left(\frac{(1+r)^{PPT}-1}{r}\right) \times (1+r) \times (1+r)^{(Term - PPT)}$$

Here P is your premium, PPT is the Premium Payment Term, Term is the Policy Term, and r is the illustration rate you selected. The Illustrative Cash Bonus is whatever this projected fund value exceeds the guaranteed Assured Benefit by (zero if the projection doesn't clear the Assured Benefit).

$$\text{Total Vesting Benefit} = \text{Assured Benefit} + \text{Illustrative Cash Bonus}$$

From Vesting Benefit to Pension

$$\text{Tax-Free Lump Sum} = \text{Total Vesting Benefit} \times \frac{\text{Commutation \%}}{100}$$ $$\text{Annuity Corpus} = \text{Total Vesting Benefit} - \text{Tax-Free Lump Sum}$$ $$\text{Estimated Annual Pension} = \text{Annuity Corpus} \times \frac{\text{Assumed Annuity Rate}}{100}$$

The Assumed Annuity Rate you enter approximates the payout rate an immediate annuity would offer on the corpus at the time you vest - actual annuity rates depend on prevailing rates and the annuity option chosen at that time.

Other Plan Features

• Special Withdrawal: after 3 policy years, you can withdraw up to 25% of total premiums paid for planned needs, without fully surrendering the policy.
• Loan: a loan of up to 80% of the surrender value is available after the policy acquires a surrender value.
• Free Look Period: 30 days from receipt of the policy document to review and, if unsatisfied, return the policy.

Worked Example

A 35-year-old chooses Regular Pay with an Annual Premium of ₹1,00,000, a Policy Term of 25 years (vesting at age 60), and the 8% illustration rate:

• Total Premiums Paid over 25 years = ₹25,00,000
• Assured Benefit = 1.05 × ₹25,00,000 = ₹26,25,000 (guaranteed)
• Projected fund value at 8% p.a. easily clears the Assured Benefit, so most of the Vesting Benefit comes from the Illustrative Cash Bonus
• At 60% commutation, 60% of the Total Vesting Benefit is paid out tax-free, and the remaining 40% purchases an annuity that - at an assumed 6% annuity rate - pays a guaranteed income for life

Enter your own premium, term, and assumptions above to see your projected numbers.

Disclaimer: This is an independent, illustrative calculator and is not affiliated with or endorsed by ICICI Prudential Life Insurance Company Limited. Only the Assured Benefit (105% of Total Premiums Paid) is guaranteed; the Cash Bonus, Total Vesting Benefit, and pension figures are non-guaranteed projections based on the investment rate you choose. Refer to the official policy document and Benefit Illustration from ICICI Prudential Life before making any purchase decision.