In addition to relaxing exit requirements for the National Pension System (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) has allowed subscribers who join after the age of 65 to invest up to 50% of their funds in equity.
On the basis of the huge number of requests from existing subscribers to remain invested in NPS beyond the age of 60 or their superannuation, and the desire from citizens over 65 years to open NPS, the Pfrda decided to raise the entry age for NPS.
Each NPS participant must be a resident or a non-resident Indian citizen, or an OCI, between the ages of 65 and 70, in order to participate and maintain their NPS account up to the age of 75.” According to the PFRDA, members who have cancelled their NPS accounts are allowed to register a new NPS account if they meet the new age requirements.
The following are some of the aspects and benefits of raising the entry age:
Optional Asset Allocation and Pension Fund Selection
Those who join NPS after the age of 65 have the option of choosing their PF and asset allocation, with a maximum equity exposure of 15% and 50% under the automatic and active choices of the NPS. When it comes to the PF, it can be altered once a year, while the asset allocation
We’re getting out of here
Subscribers who join NPS beyond the age of 65 will be subject to the following conditions: After three years, it is normal to leave. In order to withdraw the remaining amount, the subscriber must use at least 40% of the corpus to purchase an annuity. There is also an option to withdraw all of the money in a lump payment if it is equal to or less than 5.00 lakh.
> Premature exit is defined as leaving before the conclusion of three years. As part of the pre-mature exit option, the subscriber is expected to use at least 80 percent of the corpus for the purchase of an annuity, with the remainder being taken As an alternative if the subscriber’s pension fund is equal to or less than 2.5 lakh, he or she might decide to withdraw the whole accrued pension An complete lump-sum payment will be made to the subscriber’s nominee in case of the subscriber’s untimely death. To maximise their gains, customers have the option of opening a Tier II account, which unlike a Tier I account, can be withdrawn at any moment.
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