The Pension Funds Regulatory and Development Authority (PFRDA) is planning to extend the maximum age of entry for availing the benefit of NPS to 70 years from 65 currently prevailing, PFRDA chairman Supratim Bandyopadhyay has informed in a virtual press conference.
“We are also looking at allowing subscribers who join after the age of 60 to continue their NPS accounts till the age of 75,” added Supratim Bandyopadhyay. At present, the age limit to continue NPS accounts is 70.
Further, Bandyopadhyay highlighted that there is good interest among those who are above 60 years to open an NPS account and noted that nearly 15,000 new NPS subscribers (aged above 60 years) had enrolled for NPS in the last three years.
The pension authority, which regulates both NPS and Atal Pension Yojana (APY), is also considering a proposal to increase the limit for full withdrawal of the pension amount by Rs 3 lakh. At present, full withdrawal is only permissible if the pension corpus is Rs 2 lakh or less.
PFRDA will soon come out with a request for proposals (RFP) for the design of a minimum guaranteed pension product in the NPS. It will also open a 45-day window allowing “on tap” licences for pension fund managers.