Pension Fund Regulatory and Development Authority (PFRDA) has been working since last 5 years to increase the pension coverage in the country which has now become a reality.
PFRDA has finally increased the maximum age of joining under NPS-Private Sector (i.e. All Citizen and Corporate Model).
The existing age was 60 years which has now increased to 65 years.
NPS provides a very robust platform to the subscriber to save for his/her old age income security. Due to the better healthcare facilities and increased fitness, along with the opportunities and avenues available in the private sector as well as in the capacity of self-employment, more and more people in their late 50s or 60s are now living an active life allowing them to be employed productively.
The subscriber joining NPS beyond the age of 60 years will have the same choice of the Pension Fund as well as the investment choice as is available under the NPS for subscribers joining NPS before the age of 60 years.
Subscriber joining NPS after the age of 60 years will have an option of normal exit from NPS after completion of 3 years in NPS. In this case, the subscriber will be required to utilize at least 40% of the corpus for the purchase of a annuity and the remaining amount can be withdrawn in lump-sum.
This initiative will allow a larger segment of the society particularly senior citizens to reap the benefits of NPS and plan for their regular income.