The National Pension System (NPS) for Senior Citizens is a brilliant scheme run by the government. Changes happen from time to time to make it more and more attractive. Now that the elderly can get more pension, PFRDA has proposed several new changes.
New Delhi: The National Pension System (NPS) for Senior Citizens is a brilliant scheme run by the government. Changes happen from time to time to make it more and more attractive. Now that the elderly can get more pension, PFRDA has proposed several new changes. We understand many changes regarding NPS one by one.
1. Investment scope will increase in NPS
It has been proposed to increase the maximum age of investment in NPS to 70 years. The maximum age limit is 65 years. That is, only a person up to 65 years can invest in NPS.
2. Account will continue for 75 years
PFRDA has also given a big relief to those subscribers, it has been proposed that those who join the NPS after the age of 60 can now keep the NPS account operational till the age of 75 years. The maturity limit for all other subscribers is 70 years.
3. Across 60 people increased interest in NPS
PFRDA says that when we increased the age limit for entry in NPS from 60 to 65 years, during three and a half years, 15,000 subscribers opened accounts in NPS, whose age was above 60 years. PFRDA chairman Supratim Bandyopadhyay said that, therefore, we thought of raising the maximum age limit further.
4. Will be able to withdraw 5 lakh without annuity!
Apart from this, PFRDA has also proposed that such pension funds which are less than Rs 5 lakh can be withdrawn from it, so far only those with less than 2 lakh pension funds can withdraw money. This withdrawal will be tax free. PFRDA has set a target of adding 1 million new subscribers to the NPS in the current financial year. Last year, 6 lakh new subscribers were added to the NPS. NPS and Atal Pension Yojana (APY) are expected to jointly add 1 crore new subscribers.
5. Products with guaranteed returns will come in NPS
PFRDA has also proposed to bring products with guaranteed returns under NPS. At present, the system of contribution to NPS is defined, that is, pension depends on the performance of NPS pension fund. According to PFRDA, Request for Proposal (RFP) for designing new guaranteed return products will be released in 15-20 days.