For the last 13 years, PFRDA has given compound interest at the rate of 10.27 per cent per annum. The returns of PFRDA have always been higher than the inflation rate. The size of pension assets is Rs 35 lakh crore.
New Delhi. There is good news for those investing in National Pension Scheme (NPS). The Pension Fund Regulatory and Development Authority (PFRDA) may soon launch a new scheme. Guaranteed pension will be given to the investors in this scheme. It can be launched under the National Pension System from 30 September.
In a report by Moneycontrol, this information has been given by quoting news agency PTI. PFRDA Chairperson Supratim Bandopadhyay said that PFRDA gives inflation friendly returns to the investors. Talking to reporters in Bangalore, he said that the work on minimum guarantee return scheme is going on. Hopefully we will be starting it from 30th September.
Has given great returns
Supratim Bandopadhyay said that during the last 13 years, PFRDA has given compound interest (CAGR) at the rate of 10.27 per cent per annum. The returns of PFRDA have always been higher than the inflation rate. He said that the size of pension assets is Rs 35 lakh crore. Out of this, 22 percent i.e. a total of Rs 7.72 lakh crore is with the National Pension System (NPS). 40 percent of the funds are with the Employees’ Provident Fund Organization. Bandyopadhyay said that this year the number of subscribers has increased from 3.41 lakh to 9.76 lakh. This number is expected to increase by 20 lakh in the current financial year.
What is National Pension System?
NPS is a Market Linked Product. Its returns may fluctuate. Two accounts can be opened in NPS. Tier 1 and Tier 2. Tier 2 account is the savings account. It is voluntary. There is no restriction on withdrawing money from it. Tier 1 account is the retirement account. Certain conditions apply when withdrawing money from this account. In this, only partial withdrawal can be made before retirement.
This means that you can withdraw some money. You can withdraw 25% of your contribution from this account on completion of five years. There are already certain reasons for this. These include – treatment of illness, disability, marriage or education of children and purchase of property.
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