The government has increased the maximum age of joining the National Pension System (NPS)-Private Sector from the existing 60 years to 65 years. “Now, any Indian citizen, resident or non-resident, between the age of 60 and 65 years, can also join NPS and continue up to the age of 70 years,” the Finance Ministry has tweeted. Subscribers joining NPS after the age of 60 years will have an option of normal exit from NPS after completion of 3 years. This initiative will allow a larger segment of society, particularly senior citizens, to reap benefits of NPS and plan for their regular income.
It may be noted that NPS provides a very robust platform to the subscriber to save for his/her old age income security. 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 subscriber joining NPS beyond the age of 60 years will have the same choice of the Pension Fund as well as the investment choice as is available under the NPS for subscribers joining NPS before the age of 60 years,” the government said in a press release.
Subscriber joining NPS after the age of 60 years will have an option of normal exit after completion of 3 years in NPS. In this case, the subscriber will be required to utilize at least 40% of the corpus for purchase of annuity and the remaining amount can be withdrawn in lump-sum. In case of such subscriber willing to exit from NPS before completion of 3 years, he/she will be allowed to do so, but in such case, the subscriber will have to utilize at least 80% of the corpus for purchase of annuity and the remaining can be withdrawn in lumpsum.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.