Now it's possible to join National Pension System (NPS) till the age of 65 against the earlier limit of 60 years. This was stated by Pension Fund Regulatory and Development Authority (PFRDA) in a circular issued today on its website. The change becomes effective from today. The subscriber joining the NPS after the age of 60 would be eligible to continue in the system up to the age of 70 years and during this period the subscriber may continue to contribute, the circular said. The finance ministry has hailed the initiative saying that it would allow a larger segment of the society particularly senior citizens to reap the benefits of NPS and plan for their regular income.
"Due to the better healthcare facilities and increased fitness, along with the opportunities and avenues available in the private sector as well as in the capacity of self-employment, more and more people in their late 50s or 60s are now living an active life allowing them to be employed productively," the PFRDA circular further added.
For those willing to join beyond the age of 60, following rules will apply to them.
A NPS entrant beyond the age of 60 would have the same choice of pension fund as well as the investment choice as is available under the NPS for subscribers joining NPS before the age of 60 years.
A subscriber joining after the age of 60 will have an option of normal exit from NPS after completion of 3 years in NPS.
However, he will be required to utilize at least 40 per cent of the corpus for purchase of annuity and the remaining amount can be withdrawn in lump-sum.
He can exit from NPS before completion of three years in the NPS. But in this case the subscriber will have to utilise at least 80 per cent of the corpus for purchase of annuity and the remaining can be withdrawn in lumpsum.
In case of unfortunate death of the subscriber during his stay in NPS, the entire corpus will be paid to the nominee of the subscriber.