Good Place. Good Things. Good Time.

NPS subscribers joining after 65 years of age can take up to 50%

NPS subscribers joining after 65 years of age can take up to 50%

The Pension Fund Regulatory and Development Authority (PFRDA), besides easing National Pension System (NPS) exit rules, has permitted subscribers, who join it after the age of 65 years, to allocate up to 50% of the funds in equity.

The Pfrda in a circular said that in response to the large number of requests from the existing subscribers to remain invested in NPS beyond 60 years or beyond their superannuation, and the desire from citizens above 65 years to open NPS, it has been decided to increase the entry age of NPS in the interest of subscribers and benefit them with the opportunity of creating a long term sustainable pension wealth. “The existing age of entry which is 18-65 years has been revised to 18-70 years,” PFRDA said.

“Any Indian Citizen, resident or non-resident and Overseas Citizen of India (OCI) between the age of 65-70 years can join NPS and continue or defer their NPS Account up to the age of 75 years. Those subscribers who have closed their NPS accounts are permitted to open a new NPS account as per increased age eligibility norms,” PFRDA said.

The features and benefits of increased age of entry are as mentioned below:

Choice of Pension Fund and Asset Allocation

The subscriber, joining NPS beyond the age of 65 years, can exercise the choice of PF and asset allocation with the maximum equity exposure of 15% and 50% under auto and active choice respectively. The PF can be changed once per year whereas the asset allocation can be changed twice.

Exit and withdrawals

The exit conditions for subscribers joining NPS beyond the age of 65 years will be as under:

> Normal exit shall be after 3 years. The subscriber will be required to utilize at least 40% of the corpus for purchase of annuity and the remaining amount can be withdrawn as lump sum. However, if the corpus is equal to or less than 5.00 lakh, the subscriber may opt to withdraw the entire accumulated pension wealth in lump sum.

> Exit before completion of 3 years shall be treated as premature exit. Under pre-mature exit, the subscriber is required to utilize at least 80% of the corpus for purchase of annuity and the remaining can be withdrawn in lump sum. However, if the corpus is equal to or less than 2.5 lakh, the subscriber may opt to withdraw the entire accumulated pension wealth in lump sum.

> In case of unfortunate death of the subscriber, the entire corpus will be paid to the nominee of the subscriber as lump sum.

The subscribers are also eligible to open Tier II account for investing their disposable income to optimize their returns which unlike Tier-I account can be withdrawn at any time.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint.
Download
our App Now!!

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – abuse@techiazi.com. The content will be deleted within 24 hours.

The post NPS subscribers joining after 65 years of age can take up to 50% equity exposure appeared first on TechiAzi.

Search more articles here: NPS subscribers joining after 65 years of age can take up to 50%

Read original article here: NPS subscribers joining after 65 years of age can take up to 50%



Disclaimers and Denial of responsibility..!

Denial of responsibility! TheTopMag.com is an automatic aggregator of all media around the world. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – jamesonline999@gmail.com . The content will be deleted within 72 hours.
You might also like
Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.