Senior citizens up to 70 years of age can now open NPS account; details here

Senior citizens who wish to join the National Pension Scheme (NPS) can rejoice. The Pension Fund Regulatory And Development Authority (PFRDA) has revised the upper age limit for the same. As per the new rule, elderly people can open an account with the National Pension System if they are up to 70 years of age. The Pension Fund Regulatory and Development Authority had increased the maximum age to register for the NPS from 60 to 65 years of age. Now, any Indian citizen, resident or non-resident, as well as an Overseas Citizen of India (OCI), who is between 65 and 70 years, is allowed to join NPS and keep or postpone their NPS Account up to the age of 75.Anyone between the ages of 18 and 70 can now open an NPS account. Subscribers who previously cancelled their NPS accounts are now eligible to open new NPS accounts owing to the revised age criteria. Senior people will benefit from the new eligibility rules, particularly those who planned to open an account and begin saving for expenses after retirement. By investing in NPS, individuals can now get ready for a steady pension for the remainder of their lives. Tax savings for seniors are generated by the amount invested in NPS, which also has tax benefits.NPS offers its subscribers the option to split their funds between equity and debt investments, such as corporate bonds and sovereign bonds. It will aid them to combat inflation after they have retired. After reaching 65, individuals who join NPS possess two options- asset allocation or pension fund (PF), with the maximum equity exposures for the Auto and Active Choice options being 15 percent and 50 percent, respectively.While a Tier I account is created automatically when an NPS account is opened, a Tier II account, which has no lock-in period, can be opened to keep savings liquid. One should contribute funds to equities even in retirement while taking inflation and life expectancy into consideration. With NPS, customers may decide how much of their investment should be split between equities and debt assets such as corporate bonds and government bonds.Read all the Latest News, Trending News, Cricket News, Bollywood News, India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.

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Published on : 2022-12-14 06:57:14

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