In a huge relief to pension subscribers in National Pension Scheme (NPS), the Pension Fund Regulatory and Development Authority (PFRDA) has revised the rules for those joining it after 65 years of age. In a set of new rules, PFRDA has permitted them to allocate up to 50% of the funds in equity, besides easing the exit norms.
The pension fund has revised the guidelines on entry and exit following an increase in the maximum age for joining the NPS from 65 years to 70 years of age. The entry age for NPS has been revised to 18-70 years from 18-65 years.Read more ↓
Any Indian citizen and Overseas Citizen of India (OCI) in the age group of 65-70 years can also join NPS and continue up to the age of 75 years, according to a PFRDA circular on the revised guidelines.
“Those subscribers who have closed their NPS accounts have also been permitted to open a new account as per increased age eligibility norms,” PFRDA said in a statement.
The maximum equity exposure, however, will be only 15%, if subscribers joining NPS beyond the age of 65 years decide to invest under the default ‘Auto Choice’.
“The subscriber, joining NPS beyond the age of 65 years, can exercise the choice of PF (pension fund) and asset allocation with the maximum equity exposure of 15 per cent and 50 per cent under Auto and Active Choice, respectively,” it further added. ReadMore
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