The Ministry of Finance on Wednesday increased the maximum age of joining the National Pension System (NPS) from the existing 60 years to 65 years under NPS - Private Sector (i.e. all citizen and corporate model).
In accordance with several initiatives undertaken by the Pension Fund Regulatory and Development Authority (PFRDA) during the last few years, now any Indian citizen, resident or non-resident, between the age of 60 - 65 years, can join NPS and continue up to the age of 70 years.
The subscriber joining NPS beyond the age of 60 years will have the same choices of pension fund and investment, as those individuals who subscribe to it before the age of 60 years.
Subscriber joining NPS after the age of 60 years will have an option of normal exit from NPS after completion of three years. In this case, the subscriber will be required to utilize at least 40 percent of the corpus for purchase of annuity and the remaining amount can be withdrawn in lump-sum.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 three years, he/she will be allowed to do so, but the subscriber will have to utilize atleast 80 percent of the corpus for purchase of annuity and the remaining can be withdrawn in lumpsum.
Moreover, 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.
With this increase of joining age, the subscribers who are willing to join NPS at the later stage of life will be able to avail the benefits of NPS.