NPS Investment: Now the subscribers of NPS can remain in this investment medium after the age of 60 years or even after their superannuation. Along with this, people above the age of 65 who want to open a new account in NPS, now they will also have this option.
There is good news about the popular investment medium National Pension Scheme (NPS). The Pension Fund Regulatory and Development Authority (PFRDA), which regulates pension funds in the country, has recently made a big announcement. The organization has increased the entry limit of NPS and the period of stay in investment (NPS age limit). Now if the subscribers of NPS want to continue in this investment channel after the age of 60 years or even after their superannuation, then they will be able to do so. All investors will be able to continue investing in NPS till the age of 70 years. Along with this, people above the age of 65 who want to open a new account in NPS, now they will also have this option. Investors in this category can keep investing for 75 years.
By issuing a circular on August 26, 2021, PFRDA had said that ‘We have received requests from a large number of such NPS subscribers that they want to continue investing after 60 years or even after their superannuation. At the same time, there is a request from senior citizens above 65 years that they want to open an NPS account, in such a situation, taking a decision in their interest, it has been decided to increase the entry age of NPS, so that the subscribers can stay for a long time. To create a perpetual pension asset. The organization said that the entry age which is now 18 to 65 years, it has been increased from 18 to 70 years.
Giving guidelines on the revised entry and exit age, PFRDA said that any Indian citizen, resident or non-resident and overseas citizen of 65 to 70 years can open an account in NPS and can operate his account till the age of 75 years. Even as per the new guidelines, the subscribers who had closed their NPS account can open their new account according to the new age limit.
What will be the benefits?
PFRDA has said in its circular that the subscribers joining NPS after the age of 65 years will be able to open Tier-2 account, so that they can withdraw their returns at any time.
Subscribers in this category will get an exposure of 15% equity in auto for pension fund choice and 50% for active choice. PF can be changed once in a year, while asset allocation can be changed twice.
What will be the exit rules?
In this, investors joining at the age of 65 years can do normal exit after three years. However, to buy annuity, they will have to use 40 percent of their fund i.e. corpus, the rest of the amount can be withdrawn. But if their entire corpus is less than 5 lakhs or 5 lakhs, then they can withdraw this entire amount in lumpsum.
Yes, also know that if investors of this age limit exit before the completion of three years, then it will be premature exit. In such a situation, they will have to invest 80 percent of their corpus in buying annuity and they will be able to withdraw the remaining 20 percent in corpus lumpsum.
If the subscriber dies, then the entire corpus of his account will be given to his nominee in lumpsum.
