Saral Pension Yojana 2026

Importance of Saral Pension Yojana

The Saral Pension Yojana is a reliable pension scheme that secures elderly’s financial autonomy. Following are the key importance of the Saral Pension Yojana: 

1. It is straight-forward and easy to understand. 

1. It helps individuals make informed choices and choose plans according to needs and priorities. 

1. It is accessible to a wider group of individuals as medical check-ups are not required. 

1. It offers pension benefits that are lifelong and ensures long-term financial autonomy of individuals aged 40 to 80 years. 

1. It is safe and stable as returns are fixed and not affected by market fluctuations. 

1. It offers pensions that can continue for the spouse after the policy holder’s lifetime.   

Key Features of Saral Pension Yojana

1. It provides a guaranteed pension for life. The Saral Pension plan also gets initiated after the first month of its purchase. 
2. There are two annuity plans provided by insurance providers: 

• A life annuity that delivers 100% return of the invested amount. 

• A joint life annuity that ensures 100% return of the invested amount after the death of the last surviving policy holder. 

1. It removes the need to make multiple premium payments and instead make a one-time lump sum investment. 
2. Investing large sums of money helps in receiving a higher amount of pension/income. 
3. The full purchase price is returned to the nominee after the passing away of policy holder. 
4. It is possible to surrender the policy mid-way and receive 95% of the purchase price if the policy holder is diagnosed with a critical disease or illness. 
5. Saral Pension Yojana provides four types of flexible payout options such as yearly, half-yearly, quarterly, or monthly. You can choose according to your requirements. 
6.  Policy holders can become eligible for a loan against the policy after six months to help cover any unexpected expenses. 
7. Under Section 80C, tax deductions of up to Rs.1.5 lakh can be claimed annually, and the benefits paid to your nominee are tax-free under Section 10(10D).

List of Insurers for Saral Pension Plans 

Calculator for the Saral Pension Yojana

Individuals can get an idea of how much pension they will be receiving by using the Saral Pension Yojana Calculator. Individuals can calculate returns by entering the following details: 

1. Age 

1. Purchase price 

1. Single or Joint Life annuity. 

Benefits of the Saral Pension Yojana 

Pay-out Benefit

For a joint-life annuity in the Saral Pension Yojana, after the death of the primary annuitant, the secondary annuitant receives the whole purchase price as per the plan’s provisions. 

1. Under Saral Pension Yojana provisions, after policy holder’s demise, his/her spouse receives the 100% premium. Post the demise of the spouse; the purchase price will be provided to the nominee of the policy. 

1. In another provision, if the spouse’s death occurs before the policy holder, then he/she will receive 100% of the purchase price. 

Survival Benefit

1. Single Life: Annuity payments will be made at the end of the chosen interval, such as monthly, quarterly, or yearly and will continue for as long as the life assured is alive. 

1. Joint Life: Based on the chosen payment frequency, annuity instalments will keep being paid as long as at least one of the two covered lives survives.

Maturity Benefit

1. No benefit upon maturity is provided as the pension remains available till the annuitant lives. 

Loan

1. A loan on the policy can be availed after 6 months from the date of policy. The maximum amount of loan that can be availed must be not more than half of the yearly annuity received from the policy. 

1. If the policy holder chooses a joint-life option, then the loan can be obtained only by the primary annuitant. If the primary annuitant is no more, the secondary annuitant can manage or continue the loan. 

1. The insurance provider will deduct the loan interest from your annuity payments. The interest will be calculated according to how often you receive the annuity (monthly, quarterly, or yearly) and will be charged on the annuity payment date. However, you can repay the loan at any time during the period you are receiving annuity payments.

Diagnosis or Illness

1. If the policy holder, their spouse or the children is medically diagnosed with a critical illness mentioned in the policy, the policy holder is allowed to surrender the policy any time following the first six months.  

1. After terminating the policy, 95% of the purchase amount will be provided to the policy holder after deducting any outstanding interest or loan amount, if applicable. After the surrender value is paid, the policy will be cancelled.