ICICI Pru Group Superannuation Calculator

ICICI Pru Group Superannuation Calculator

ICICI Pru Group Unit Linked Superannuation Plan (UIN: 105L136V03) is a group scheme your employer sets up to build a retirement (superannuation) benefit on your behalf. Your employer contributes annually into a superannuation fund maintained in your name, invested in unit-linked funds. At retirement, part of the accumulated fund value is paid to you as a tax-free lump sum and the rest is compulsorily used to buy an annuity that pays you a pension for life. This calculator projects your fund's growth, the resulting tax-free lump sum, and your estimated pension.

How the Plan Works

• Employer Contribution: your employer contributes a fixed amount each year into your superannuation fund account, invested in market-linked (unit-linked) funds.
• Fund Growth: being unit-linked, your fund's value depends on the actual performance of the underlying funds. Since future market performance can't be known in advance, this calculator - like the insurer's own Benefit Illustration - shows what your fund could look like at the two investment rates mandated by IRDAI for illustration purposes: 4% p.a. (conservative) and 8% p.a. (optimistic).
• At Retirement: as per Income-tax Rules governing approved superannuation funds, you can commute (withdraw as a tax-free lump sum) up to 1/3rd of the accumulated fund value. At least 2/3rd must compulsorily be used to purchase an annuity, which then pays you a pension for life.

Projected Fund Value

Your employer's contributions are modeled as being paid at the start of each policy year (an annuity-due) and compounding at the illustration rate r until retirement:

$$FV = C \times \left(\frac{(1+r)^{n}-1}{r}\right) \times (1+r)$$

Here C is your Annual Employer Contribution, n is the number of years from your current age to your chosen Retirement Age, and r is the illustration rate you selected (4% or 8%).

From Fund Value to Pension

$$\text{Tax-Free Lump Sum} = \text{Projected Fund Value} \times \frac{\text{Commutation \%}}{100}$$ $$\text{Annuity Corpus} = \text{Projected Fund Value} - \text{Tax-Free Lump Sum}$$ $$\text{Estimated Annual Pension} = \text{Annuity Corpus} \times \frac{\text{Assumed Annuity Rate}}{100}$$

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

Other Plan Features

• Portability: the vested benefit belongs to you. If you change employers, it can typically be transferred to your new employer's superannuation scheme or another approved fund, subject to trust rules.
• Death Benefit: if you die before retirement, the full accumulated fund value is paid out to your nominee.

Worked Example

A 30-year-old employee's employer contributes ₹60,000 a year to their superannuation fund, with retirement planned at age 60 (a 30-year term) and the 8% illustration rate:

• Total Employer Contributions over 30 years = ₹18,00,000
• Projected Fund Value at 8% p.a. compounds to a multiple of total contributions
• At 33% commutation, roughly a third of the fund is paid out tax-free, and the remaining two-thirds purchases an annuity that - at an assumed 6% annuity rate - pays a pension for life

Enter your own contribution, ages, 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. Being unit-linked, all projected figures - Fund Value, Tax-Free Lump Sum, and Pension - are non-guaranteed and depend on actual market performance and the investment rate you choose. Refer to the official policy document and Benefit Illustration from ICICI Prudential Life before making any decision.