LIC’s New Jeevan Shanti is a popular annuity plan designed for financial security in retirement. It offers the option of purchasing a deferred annuity and requires a one-time lump sum payment. The plan ensures regular annuity payments throughout the annuitant’s lifetime, making it an excellent choice for retirees looking for guaranteed income. When combined with QROPS, LIC’s Jeevan Shanti becomes an ideal solution for NRIs transferring their UK pensions to India.
Why Choose QROPS LIC’s Jeevan Shanti?
A deferred annuity plan, like LIC’s Jeevan Shanti, can be a smart financial move for securing a steady post-retirement income. For individuals considering transferring their UK pensions through QROPS, this plan offers unique advantages. Let’s explore why it’s worth considering.
Retirement income for life
One of the key reasons to opt for QROPS LIC’s Jeevan Shanti is its ability to provide guaranteed retirement income. During your working years, you can transfer your pension and invest in this plan. Over time, the funds accumulate and are converted into regular payouts, ensuring financial stability during retirement.
Tax-deferred growth
The plan allows your investment to grow tax-deferred during the accumulation phase. This means no taxes are levied on dividends, interest, or capital gains while your funds grow. For those transferring their pension through QROPS, this feature ensures better long-term growth of retirement savings.
Flexibility in investment
QROPS LIC’s Jeevan Shanti offers flexibility in how funds are invested. While the plan requires a lump sum payment, its structure makes it suitable for those consolidating their UK pensions. This makes it easier to align the plan with your financial goals and retirement needs.
Lifetime income protection
A significant benefit of LIC’s Jeevan Shanti is the lifetime income it guarantees. By investing your transferred pension through QROPS, you gain peace of mind knowing you won’t outlive your savings. The plan protects against longevity risks, which is crucial for a stress-free retirement.
Additional advantages of QROPS LIC’s Jeevan Shanti
The plan offers several unique features:
- No contribution limits. Unlike other retirement accounts, there are no caps on how much you can invest.
- Death benefits. The plan ensures financial protection for loved ones by offering payouts to beneficiaries in case of the policyholder’s passing during the accumulation phase.
Why choose QROPS?
By transferring your UK pension through QROPS to invest in LIC’s Jeevan Shanti, you align your retirement savings with India’s growing economy. The plan provides tax benefits, flexibility, and the security of a guaranteed income stream. It’s especially beneficial for NRIs seeking a reliable way to manage their pensions locally while avoiding the complications of managing funds abroad.
Final thoughts
QROPS LIC’s Jeevan Shanti is an excellent choice for those looking to secure a comfortable retirement. Its tax-deferred growth, lifetime income protection, and flexibility make it ideal for pension transfers through QROPS. If you’re an NRI planning to transfer your UK pension to India, this plan can help you build a financially secure future. Consulting a financial advisor can ensure you make the most of this opportunity.