Soon, 70-year-olds will be able to invest in the National Pension System (NPS) scheme. In fact, pension fund regulator PFRDA has proposed increasing the age limit for joining NPS. PFRDA plans to increase the age limit for NPS from 65 years to 70 years.
Furthermore, the Pension Regulator has suggested making a minimum guaranteed pension product. It will be covered by NPS. At present, the amount of pensions under the national pension system depends on how much has been deposited in the pension fund and how the fund has worked. It is believed that the request for such a product proposal will be put in place within the next 15-20 days.
The investment will be allowed to continue for 75 years
The pension fund regulator has proposed that investors who invest in NPS after 60 years will be able to continue their investment for 75 years. At the same time, the age limit for all other investors is set at 70 years.
People over 60 years of age
In the last 3.5 years, 15,000 people have been associated with NPS, their age is more than 60 years. Keeping this in mind, we have proposed to increase the age, ”said PFRDA president Supreme Bandopadhyay.
Permission to complete withdrawals up to Rs 5 lakhs
In addition, PFRDA is looking at withdrawing 100% of the fund if someone’s pension fund is less than Rs 5 lakh. Currently, this rule applies if the pension fund is less than Rs 2 lakh. With this, withdrawals of more than 40% are tax-free and 60% tax-free. This amount is completely tax free. With all its efforts, PFRDA aims to add one million new subscribers to its portfolio in the current financial year. PFRDA expects to add 1 crore new subscribers to the Attal Pension Scheme and NPS this fiscal year.
Offers more than EPF
EPF is now the most preferred medium for pension funds. However, in the long run, NPS has the potential to generate more revenue than EPF. With this in mind, the PFRDA is preparing to make it more attractive.
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