Pension Fund Regulator PFRDA has increased the entry age limit for National Pension Scheme from 65 to 70 years. If the NPS account is opened at the age of 65-70 years, it can be operated for 75 years.
There is good news for lakhs of pensioners of the country. Pension Fund Regulator PFRDA has made major changes in the National Pension Scheme. PFRDA has changed the entry and exit age limit for National Pension Scheme. Now under the new rule, one can enroll in the pension scheme till the age of 70 years. Earlier this limit was for 65 years.
Know what changed?
According to the revised circular of PFRDA, any Indian citizen or Overseas Citizen of India (OCI) whose age is between 65-70 years can also join NPS now. He can continue this scheme for 75 years. Along with this, the pension fund regulator said that such subscribers who have closed their NPS account can also take advantage of the changed rule. That is, now after 65 years for 70 years, they can also open a new NPS account.
Maximum 15 per cent in equity in Auto Choice
PFRDA said that if a subscriber opens an NPS account after 65 years, then he can deposit only a maximum of 15 percent of his fund in the stock market under ‘Auto Choice’. In fact, up to 75-90 percent is deposited in government securities in auto choice. Similarly, the second option of investment is Active Choice. In this, a maximum of 50 percent can be deposited in equity. The rest can be deposited in corporate bonds or government securities.
More investment options in Active Choice
According to the age of the subscriber, the fund money in Auto Choice is deposited in fixed proportions at certain places. At the same time, in Active Choice, the subscriber has a better investment option. Pension fund money is deposited in equity markets, corporate bonds, government securities and other investment avenues.
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