National pension scheme (NPS): PFRDA may soon make some important changes in NPS. Through this, common people will benefit greatly.
The National Pension System (NPS) is a very important pension scheme introduced by the Government of India. The biggest feature of this scheme is that any person can participate in it. This scheme provides financial security over a long period of time. Now the Pension Fund Regulatory and Development Authority of India (PFRDA) is going to bring many reforms to this scheme to add more people and make it more attractive.
In fact, the PFRDA amendment bill was introduced in the budget session of Parliament and it may be voted on in the upcoming monsoon session. Although, some of the changes in it are technical, but there are many changes in it which are related to the subscribers.
Here we are telling you what changes can be made in this scheme and what will benefit the common people from it.
Increase in the age of entry and exit
It is proposed to increase the age of filing and exit from the NPS scheme through the PFRDA amendment bill. Through this, the subscribers who join after 60 years can remain in it till the age of 75 years.
Right now, there is a provision that people from 18 years to 65 years can join the NPS. Now the age of entry can be increased to 70 years. Also, the age of exit is proposed to be increased from the earlier 70 years to 75 years.
This will have the advantage that now people will be able to enter this scheme even at an older age and they will get a chance to remain in it for a longer age.
Increase in exit option
NPS subscribers can withdraw 60 per cent of their contribution after retirement. The remaining 40 per cent is kept to purchase annuity. Those who are able to deposit only 2 lakh rupees till the age of retirement, have been allowed to withdraw this entire amount. Now PFRDA proposes that this limit be increased to Rs 5 lakh. The reason for this is that the pension received on this amount is very less.
Minimum Default Returns
In order to attract more and more subscribers, PFRDA is making plans under which investors can get a minimum fixed return. On behalf of the chairman of PFRDA, it has been said that apart from the NPS and Atal Pension Yojana, the regulator is also considering bringing some such products so that investors can get minimum assured returns.
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