Pension regulator PFRDA has increased the maximum age of joining for NPS-private sector to 65 years from 60 years
With this move, any Indian citizen, resident or non-resident, between the age of 60-65 years can also join National Pension System (NPS) and continue upto the age of 70 years.
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.
A 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, an official release said.
The Pension Fund Regulatory and Development Authority (PFRDA) had in the last few years taken several measures to increase the pension coverage in the country.
A 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will be required to utilize at least 40 per cent of the corpus for purchase of annuity and the remaining amount can be withdrawn in lump-sum.
In case of such subscriber willing to exit from NPS before completion of 3 years in the NPS, he/she will be allowed to do so, but in such case, the subscriber will have to utilize at-least 80 per cent of the corpus for purchase of annuity and the remaining can be withdrawn in lumpsum.
In case of unfortunate death of the subscriber during his stay in NPS, the entire corpus will be paid to the nominee of the subscriber.