The most age of entry into the National Pension System (NPS) may get increased by 5 years to 70, because the regulatory physique the Pension Funds Regulatory and Development Authority (PFRDA) is planning to improve the variety of beneficiaries beneath the scheme.
Previously, the PFRDA had increased the age limit from 60 to 65 some three years in the past. On April 15, PFRDA Chairman Supratim Bandyopadhyay mentioned at a digital press convention that round 15,000 folks above 60 joined NPS for the reason that entry age limit was raised from 60 to 65 three years in the past.
Additionally, PFRDA is planning to let NPS subscribers, who be part of on the age of 60 plus, proceed their accounts until they age 75. The maturity age for different subscribers who be part of the scheme beneath 60 years of age will stay 70.
Moreover, there’s additionally a proposal to hike the utmost corpus limit to Rs 5 lakh from the present Rs 2 lakh. This signifies that subscribers can stand up to Rs 5 lakh on the time of retirement or exit of the scheme, with out the necessity to buy an annuity.
Currently, there are round 12 insurance coverage suppliers that provide annuity merchandise and are authorized by the PFRDA. Around eight fund managers are at present investing all of the NPS fund in varied schemes they’ve opted for.
What is NPS?
The Indian authorities had launched National Pension System (NPS) in 2009. The scheme gives an funding alternative to all organised sector workers working in India.
How useful is NPS?
Since the inception of NPS in 2009, the pension fund managers affiliated with the PFRDA have generated spectacular returns. In the fairness schemes, they’ve generator a 12.03 % return, 10.02% in company bonds, and 9.66% in authorities securities.
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