New Delhi: Pension Funds Regulatory and Development Authority (PFRDA) is considering to hike the utmost age of entry into the National Pension System (NPS) from 65 years to 70 years.
The Pension fund regulator can also be mulling to enable NPS subscribers who be part of after the age of 60 years to proceed their NPS accounts until the age of 75. However, for others, the age of maturity will stay 70 years.
PFRDA can also be planning to give its subscribers an possibility of parking 40 per cent of the corpus that’s obligatory to buy an annuity on the time of retirement with a pension fund supervisor to get higher advantages.
As of now, subscribers having a corpus of over Rs 2 lakh on the time of retirement or attaining the age of 60 years want to purchase an annuity, provided by insurance coverage firms, on a compulsory foundation. They can take out the remaining 60 per cent as a lump sum.
In different phrases, if a subscriber has a corpus of Rs 2 lakh or much less on the time of retirement, it’s not obligatory for that particular person to buy an annuity as the quantity comes out to be very much less to be provided as a month-to-month pension.
Currently within the National Pension System (NPS), so lengthy the cash is getting collected within the corpus, publish retirement on the age of 60 years, one has to pay 40 per cent of the corpus to purchase an annuity and the steadiness 60 per cent could be taken out as a lump sum, PFRDA Chairman Supratim Bandyopadhyay mentioned throughout a digital convention.
#mute
With PTI Inputs
