PFRDA set to provide a better option than annuities to NPS members

Mulls raising threshold to Rs 5 lakh from current Rs 2 lakh for exemption from annuity requirement, hiking maximum age to 70 yrs from 65 yrs for NPS entry, a minimum guaranteed product, on-tap license

Topics
pension fund | NPS | NPS scheme

Indivjal Dhasmana & Bindisha Sarang  |  New Delhi | Mumbai 

The pension fund regulator, PFRDA, is considering coming out with a better option for subscribers to the National Pension System (NPS) than offered by the current low-annuity returns.

Experts said the proposed move would give investors a greater flexibility to utilise their pension funds at the time of withdrawal, but cautioned that completely doing away with annuity will deprive them with life-long returns. Currently, every subscribers whose accumulated fund has crossed Rs two lakh at the time of retirement or at 60 years of age has to park 40 per cent of the fund in annuity which are ...

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First Published: Thu, April 15 2021. 19:30 IST
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