SBI Pension Plan Scheme-Annuity Plus

SBI Pension Plan Scheme-Annuity PlusSBI Pension Plan Scheme-Annuity Plus

SBI Life Annuity plus is traditional non-participating pension plan scheme. SBI Pension Annuity Plus offers annuity option with various flexibility features. After retirement, income of an individual stops and expense continues. Medical expenses need to be incurred. During that time, income from pension offers some kind of security to the retired individual to maintain similar standard of living. In this article we would discuss about SBI pension plan scheme-Annuity plus.

Features of SBI Pension plan Annuity plus scheme

  1. Freedom to choose from variety of annuity payout options.
  2. Minimum age of entry is 40 years which provides opportunity to get pension from this age itself.
  3. You can get pension till your lifetime or your partner’s lifetime. Partner includes spouse, children, parents, in-laws or siblings.
  4. Annuity payout would be monthly, quarterly, half-yearly and yearly.
  5. Higher premiums would get higher annuity rates
  6. Riders available if you pay additional premiums
  7. Options for banks or financial institutions to pay annuity payments to owners who have done reverse mortgage with them.

You may like: Best Pension Plans in India

Benefits of SBI Pension Plan Annuity plus scheme

1) Incentive for high premiums: If you pay high premiums, you would get higher annuity rates. The higher rates would be Rs 2.50 to Rs 4.25 for every Rs 1,000 additional premiums paid over and above Rs 150,000.

2) Accidental benefit: If you can pay additional premiums, you can get accidental benefit and sum assured would be paid.

3) Tax Benefits:

  • Premiums paid for pension plans are eligible for tax deduction under section 80CCC.
  • Lump sum amount paid after death is not taxable.
  • Annuity payouts are taxable as per income tax applicable for an individual.

Sum Assured

Minimum – Rs 25,000

Maximum – Rs 50,00,000

Annuity payouts

Minimum annuity payout would be Rs 200 per month. The options available are monthly, quarterly, half-yearly and yearly.


SBI Pension plan Annuity plus scheme is available in 5 variants.

1) Life Annuity – Single life: Annuity guaranteed payout throughout the life of the annuitant. Option for lifetime payout with or without refund of the premium paid.

2) Life Annuity – Two lives: Annuity payment guaranteed for payout throughout the life of the annuitant. In this variant, last survivor among the 2 can opt for lifelong payout with or without the refund of the premiums paid.

Also read: 7 Ways to invest Retirement money in India

3) Life Annuity – Increasing annual rate: Annual payout under this variant increases 3%-5% per annum. Payout would be through-out annuitant life.

4) Life Annuity – Balance capital Refund: Under this variant, annuity payout would happen at constant rate through-out annuitant life and on death, balance would be payable to the partner. Balance premium = Premium paid minus annuity paid.

5) Annuity life – Minimum Fixed period: Annual payout at constant rate for minimum period of 5 years, 10 years, 15 years and 20 years.

Conclusion: Pension plans offer several advantages and each pension plan would have its unique features. However, majority of the pension plans offer low return on investment.

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SBI Pension Plan Scheme-Annuity Plus

Article by Suresh

Suresh KP i.e. me have written 500+ articles on this blog. I love doing analysis and identifying the Best investment options.


  1. Saleem says:

    Hello Suresh
    I am regular reader of your blog,recently an officer from SBI approached me to invest in SBI saral kind of plan,he says 2.5% assured amount and plus,plus etc.According to him if we invest 1 lac per annum for ten years, we will get 1 lac per annum every year until alive and then 50% to wife, taht can be taken as monthly too,it sounds too good and attractive,Pls help me out as always.

    • Suresh KP says:

      This is one of the pension plan. All pension plans come with similar options. You can consider it if you do not want to take risk. Alternatively you can consider taking term insurance plan and invest balance in mutual funds in large cap funds. At maturity, you can consider investing in bank FD or debt instruments which provide fixed returns.

  2. skrishnan says:

    hi suresh i am shyamala krishnanin retired in september 2014 . income tax payable is 32544, recovered is 13100, now i retired.
    and balance 19444 is to be recovered . how to save the amount
    female 60 years

  3. Rajalakshmi S says:

    Sir, my mother is a house wife aged 72 Yrs. She is interested in getting some kind of Pension for herself. So i decided to invest Rs.3L in one time pension plan of LIC , so as she may be able to get a monthly pension . Pls suggest if this plan is okay, or if there is anyother plan with good high returns and capital being safe.


  4. dsm says:

    I want idea about pension scheme . What about NRE pension . Supposed I have monthly 25000 thousand save per month .in five years. So this five year and plus 5 year. Total 10 year. After that I started the pension per month 25000 pls give me advise.

  5. santhosh says:


    I am working in banking sector. I have joined after 1 April 2004 so mine is NPS scheme.
    I have joined at the age of (Date of birth- 03-11-1014) 24 years. Now monthly Rs. 2500/- is deducting for NPS.
    Recently I received a letter from HR regarding investment option that is on Equity, Govt Securities And Other than Govt Securities.
    Please anyone guide me regarding this. How much percentage I have to invest on Equity and other securities in deducting amount.

  6. Harish Chandra says:

    Hi I want to invest 3-4 lakhs without taking any risk. Please suggest me some plans where i can invest .(preferably looking for traditional investment no in equity/debts) with high returns.

  7. sourabh says:

    Hi ,

    For a retired individual, who intends to invest a sum of Rs 20lakhs. Which is a better option-
    1. Fixed Deposit
    2. Immidiate annunity plans like Jeevan Akshay.

    For a period of 10 years which would give higer returns, considering the taxation aspect as well.

    • Suresh KP says:

      Hi Sourabh, Annuity plans would provide 4% to 6% annualised returns. However bank FD’s provide 9% to 10% annualised returns (pre-tax). If I am in such place, I would invest in nationalised banks bank FD schemes and relax

  8. mahima says:


    What do u feel abt the new ULIP policies? Some of them have capital protection + guaranteed returs.Are they safe?

    • Suresh KP says:

      Mahima, New ULIP policies are better than the ones which are issued prior to 2009 where agents have minted money from individuals. While I am not big fan of new ULIP’s, they are secured, but provide very low returns. Consider term plan and invest balance in even in a bank RD which is low risk can fetch you higher returns than ULIP’s.

  9. seetha says:

    I took  a Jeevan Anurag policy with annual premium for RS 40000  The policy began in 2005 and will be over by 2024.
    Ihave paid al the premiums till date ie till 2012 for Rs 3,20000. The sum assured is just Rs 5Lakhs.I will be paying a total of Rs760000 if I continue the policy.Even with bonus and other additions I doubt whether i will get more than say 8 lakhs. So i have decided to surrender the polcy and invest it in mutual funds.
    What will be my surrender value? In which mutual funds/other investments should i invest to get at least 8-10 laks by 2024.


    • Suresh KP says:

      Seetha, It would be difficult to tell this. You need to approach LIC office to check the surrender value .But one thing is you would get less amount when you surrender any insurance poliices. You would get more than Rs 8 Lakhs as there would be bonus and additions to the policy. The returns could be less than 5% per annum. In case you still feel that you want to surrender, you can invest the amounts in mutual funds like ICICI Pru focussed blue chip fund or HDFC Top-200 or Axis equity funds or UTI Opps fund etc., Invest in large cap and diverisifed to get higher returns.

  10. seetha says:


    can u pls compare sbi saral pension & sbi lifelong pension plan.I cant honestly make out the difference between the 2.

    My bank sent me a document on saral plan which says that if i invest 5 lakhs peryear for 5 years i will get 45000 per month for life-on my death my nominee will get the entire corpus .sounds too good to be true?

    Thank you


    • Suresh KP says:

      Seetha, Your investment amt would be Rs 25 Lakhs. However you should be investing this for next 15-20 years. Hence your total investment amount would grow twice or thrice. Means. Your Rs 25 Lakhs would go to Rs 50 to Rs 75 lakhs. Even if you deposit this in bank FD you would get Rs 5 Lakhs to Rs 7.5 lakhs which translates to Rs 40,000 to Rs 60,000. What they are promising you is Rs 45,000. Yes I would still feel to invest in term insurance and invest balance in bank FD. 

  11. vinod says:


    Isnt the sbi life annuity plus plan an immediate annuity one?




  12. prakash says:


    Is this the same as sbi life annuity plus scheme? Which option would u recommend .?


    • Suresh says:

      Prakash, Yes it is the same. In case one is conservative investor and looing for some pension schemes, you can look for SBI Annuity plus or HDFC pension plan scheme. I personally do not prefer to invest in such schemes.

  13. prakash says:


    I ànd my wife started investing in uti retirement fund abt 5 yesrs back. 

    The cut off age is I think 58. We invest arond 50000 each every year. Since its is equity based how can we be sure of the final amt ? Do they  convert the entire amt into annuity? Can you pls enlighten me on the  terms and conditions?

    • Suresh says:

      Prakash, Thought these are retirement funds these act just like any other mutual fund, but invest majority in safe invesment options. This way your money may be secured to some extent. I don’t think there are any special terms and conditions for retirement funds.

  14. Rafeeque says:

    I have NRE Account with state bank of india, thalassery.  Is it possible to open pension scheme account with this bank?

    • Suresh says:

      Rafeeque, This is pension product and you can purchase it. However there are some guidelines for that. You can contact SBI Pru life customer care for that.

  15. Annuity says:

    Hi, I must say this post is really good. I found very few basic things about annuity but so in detailed.

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