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ICICI Pru Saral Pension Calculator

What this calculator does

Saral Pension (UIN: 105N184V09) is a standard, IRDAI-mandated immediate annuity plan - every life insurer in India sells the same simplified structure under this name, so the core benefit design is identical across insurers even though pricing differs. You pay a single lump sum (the Purchase Price) and start receiving a guaranteed pension for life immediately, in the payment mode you choose. There are only two annuity options to pick from:

• Life Annuity with Return of Purchase Price: pension paid to you for life; on your death, 100% of the purchase price is returned to your nominee.
• Joint Life Last Survivor Annuity with Return of Purchase Price: pension continues as long as either you or your spouse/joint annuitant is alive; on the death of the last survivor, 100% of the purchase price is returned to the nominee.

This calculator gives you an indicative estimate of:

• the guaranteed annual pension and the amount you'll receive per installment, based on your chosen payment mode
• the effective annuity rate - your pension as a percentage of the purchase price
• confirmation that 100% of your purchase price is always returned to your nominee
• a comparison table showing how the annual pension scales with different purchase price amounts at the same age, option, and mode

Formula Used

Eligibility. Saral Pension can only be bought between ages 40 and 80, for both the primary annuitant and (if chosen) the joint annuitant:

$$40 \le Age \le 80$$

Effective age for pricing. For the Joint Life option, the calculator prices the annuity off the younger of the two ages, since the insurer must fund payouts over the longer of the two expected lifespans:

$$EffectiveAge = \begin{cases} Age & \text{Life Annuity} \\ \min(Age, JointAge) & \text{Joint Life} \end{cases}$$

Guaranteed annual pension. A base annuity rate - which rises with age, since a shorter expected payout period means a higher rate - is adjusted for a small purchase-price rebate, the annuity option chosen (the Joint Life option pays a little less per year since it's expected to be paid out over two lives), and the payment mode:

$$AnnualPension = PurchasePrice \times (BaseRate + PriceRebate) \times OptionFactor \times ModeFactor$$

Minimum pension check. IRDAI mandates a minimum pension per installment depending on payment mode (₹12,000/year, ₹6,000/half-year, ₹3,000/quarter, or ₹1,000/month) - if your purchase price is too small to clear this floor for the mode you picked, the calculator will tell you to raise the purchase price or choose a less frequent mode.

How to Use

1. Choose your Annuity Option: Life Annuity, or Joint Life Last Survivor (both return 100% of the purchase price to your nominee).
2. Enter Your Age. If you picked the Joint Life option, also enter your spouse's/joint annuitant's age.
3. Enter the Purchase Price - the single lump sum you're paying to buy the plan.
4. Choose your Payment Mode (Yearly, Half-Yearly, Quarterly, or Monthly), then submit to see your guaranteed pension.

Worked Example

A 60-year-old buys Saral Pension with a Purchase Price of ₹10,00,000, choosing Life Annuity with Return of Purchase Price, paid yearly.

• Base annuity rate at age 60: 6.2%
• Purchase price rebate for ₹10,00,000: 0.25%
• Effective rate: 6.2% + 0.25% = 6.45%
• Guaranteed annual pension: ₹10,00,000 × 0.0645 × 1.0 (Life option) × 1.0 (yearly) = ₹64,500
• Effective annuity rate: 6.45% of the purchase price
• Return to nominee on death: ₹10,00,000 (100% of the purchase price)

This is an illustrative model of the plan's benefit structure, not a reproduction of ICICI Prudential's official annuity rate card - always refer to the insurer's benefit illustration before buying a policy.