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Home Personal Finance PFRDA revised the rules for NPS entry and exit joining age increased...

PFRDA revised the rules for NPS entry and exit joining age increased to 70 years

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Pension Fund Regulator PFRDA has increased the entry age limit for National Pension Scheme from 65 to 70 years. If the NPS account is opened at the age of 65-70 years, it can be operated for 75 years.

Pension Fund Regulator PFRDA has made a big change regarding the National Pension Scheme. PFRDA has changed the entry and exit age limit for National Pension Scheme. Now one can enroll in this pension scheme till the age of 70 years. Earlier this limit was for 65 years.Also Read: Tired of credit cards? Keep these things in mind while closing the card




According to the revised circular of PFRDA, any Indian citizen or Overseas Citizen of India (OCI) whose age is between 65-70 years can also join NPS now. He can continue this scheme for 75 years. The pension fund regulator said that such subscribers who have closed their NPS account can also take advantage of the changed rule. This means, after 65 years they can also open a new NPS account for 70 years.

Maximum 15 per cent in equity in Auto Choice

PFRDA said that if a subscriber opens an NPS account after 65 years, then under Auto Choice, he can deposit only a maximum of 15 percent of his fund in the stock market. In auto choice, 75-90 percent is deposited in government securities. The second option of investment is Active Choice. In this, a maximum of 50 percent can be deposited in equity. The rest can be deposited in corporate bonds or government securities.Also Read: If you want to double money, then follow Rule of 72, it works like this

More investment options in Active Choice

According to the age of the NPS subscriber, the amount of the fund is deposited in the auto choice in the prescribed proportion at certain places. At the same time, in Active Choice, the subscriber has a better investment option. Pension fund money is deposited in equity markets, corporate bonds, government securities and other investment avenues.

Lump sum 60% can be withdrawn

According to the new rule regarding exit from this pension scheme, if a subscriber enrolls in this scheme after 65 years, then he will have to stay in it for at least 3 years. A maximum of 60 percent of the fund that will be ready after 65 years can be withdrawn in lump sum, while 40 percent of the fund will have to buy an annuity ie regular income plan.Also Read: If UAN is not linked with Aadhar, then so many things will get stuck




Corpus of less than 5 lakhs can be withdrawn completely

If the corpus size is 5 lakhs or less then the entire fund can be withdrawn in one go. If the corpus size is more than 5 lakhs then
60 per cent can be withdrawn in lump sum and 40 per cent annuity has to be purchased. If the fund size is between 2.5-5 lakhs, then 20 per cent can be taken out in lump sum and 80 per cent will have to be purchased an annuity. However, this is for pre-mature exit.

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