The Pension Fund Regulatory and Development Authority (PFRDA) on 1 November 2017 increased the maximum age of joining under National Pension System (NPS)-Private Sector (All Citizen and Corporate Model) from the existing 60 years to 65 years of age.
The above decision was taken to increase the pension coverage in the country.
• With this, any Indian Citizen, resident or non-resident, between the age of 60- 65 years can now join NPS and continue up to the age of 70 years in NPS.
• Moreover, the subscribers who are willing to join NPS at the later stage of life will be able to avail the benefits of NPS.
• The subscribers joining NPS beyond the age of 60 years will have the same choice of the Pension Fund as well as the investment choice as available for subscribers joining NPS before the age of 60.
• Subscribers joining NPS after the age of 60 years will have an option of normal exit from NPS after completion of 3 years in NPS. In this case, the subscriber will be required to utilize at least 40 per cent of the amount for purchase of annuity and the remaining amount can be withdrawn.
• If subscriber wishes to exit from NPS before completion of 3 years in the NPS, he/she will be allowed to do so. However, the subscriber will have to utilize at-least 80 per cent of the corpus for purchase of annuity and the remaining can be withdrawn in lump sum.
• In case of unfortunate death of the subscriber during his stay in NPS, the entire corpus will be paid to the nominee of the subscriber.
• This initiative will enables senior citizens to obtain the benefits of NPS and plan for their regular income.
The NPS-Private Sector (All Citizen and Corporate Model) provides a strong platform to the subscriber to save for his/her old age income security.
When: 1 November 2017