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National Pension Scheme gets attractive for subscribers above age of 65

New Delhi – One can now invest in National Pension Scheme up to age of 70 years instead of 65 years. Pension Fund Regulatory and Development Authority have now made the National Pension Scheme more attractive for the subscribers.

The Pension Fund Regulatory and Development Authority have made changes in age limit prescribed for National Pension Scheme earlier. Now one can enter the National Pension Scheme after the age of 65 years also but with condition of remaining invested for at least 3 years. Earlier one could become subscriber of National Pension Scheme only up to age of 65 years.

The new rules provide for subscription under National Pension Scheme after age of 65 year up to 70 years for Indian and overseas citizen of India. Once subscribed, the investment in National Pension Scheme can continue up to age of 75 years under the new rules. The subscribers who have closed their National Pension Scheme account are also got permitted to open a new account as per increased age limit norms.

The subscriber, joining National Pension Scheme beyond 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. Normal exit under the new age rules would be after 3 years.

The National Pension Scheme subscriber will be required to utilize at least 40% of the corpus for the purchase of annuity and the remaining amount can be withdrawn as lump sum. Exit before completion of 3 years under the new rules would be treated as premature exit. In case of death of the subscriber, the entire amount of the corpus would be paid to the nominee as lump sum amount.

National Pension Scheme subscriber beyond the age of 65 years would now also eligible to open tier II account for investing their disposable income to optimize their returns which like Tier-I account can be withdrawn any time.

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