National Pension System: NPS is a great scheme run by the government for senior citizens. Changes are made from time to time to make it more and more attractive. Let us know its proposals.
National Pension System: National Pension System (NPS) for senior citizens is a great scheme run by the government. Changes are made from time to time to make it more and more attractive. Now the elderly can get more pension, PFRDA has proposed for many new changes. Let us understand all the changes of NPS one by one.
1. The scope of investment in NPS will increase
The maximum age of investment in NPS has been increased to 70 years. That is, a person up to 70 years of age can invest in NPS.
2. The account will continue for 75 years
PFRDA has also given a big relief to those subscribers who join NPS after the age of 60 years, they can now continue the NPS account till the age of 75 years. The maturity limit for all other subscribers is 70 years.
3. People above 60 have increased interest in NPS
PFRDA says that when we increased the age limit for entry in NPS from 60 to 65 years, during three and a half years, 15 thousand subscribers opened an account in NPS, whose age was above 60 years. PFRDA Chairman Supratim Bandyopadhyay said that therefore we thought of increasing the maximum age limit further.
4. 5 lakhs can be withdrawn without annuity!
Apart from this, PFRDA has also said that in such pension funds which are less than Rs 5 lakh, full money can be withdrawn from them, so far only those with less than 2 lakh pension funds can withdraw the entire amount. This withdrawal will be tax free. PFRDA has set a target of adding 10 lakh new subscribers to the NPS in the current financial year. Last year 6 lakh new subscribers were added to NPS. NPS and Atal Pension Yojana (APY) combined are expected to add 1 crore new subscribers.
5. Products with Guaranteed Returns will come under NPS
PFRDA has also introduced products with guaranteed returns under NPS. At present, the system of contribution to NPS is defined, that is, the pension depends on the performance of the NPS pension fund.
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