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.

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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

Suresh KP


  1. 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.

    1. 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. 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. 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. 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. Hi

    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.

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