Entry age, exit guidelines revised: Know all about the changed NPS rules HERE

The Pension Fund Regulatory and Development Authority (PFRDA) has recently proposed some changes in the rules and guidelines for the National Pension Scheme (NPS), which can be a beneficial move for the senior citizens hoping to be a part of the financial scheme.

A division of the PFRDA, the National Pension Scheme (NPS) falls under the jurisdiction of the Ministry of Finance. The NPS is a voluntary defined contribution pension system in India, through which senior citizens can do planned savings in the form of pensions.

As per the latest revisions in the rules, the entry age to apply for the NPS has been increased and the exit guidelines have been modified. According to the revised guidelines of PFRDA, senior citizens can now open their NPS accounts till the age of 70. Check out the detailed list of revised guidelines below-

Revised National Pension Scheme (NPS) rules

1. As per the revisions introduced by the PFRDA, the entry age for the NPS scheme has been increased. Now, senior citizens can open their NPS accounts till the age of 70. Earlier, the maximum age to apply for the scheme was 65.
2. In reference to the increase in entry age, any Indian citizen or Overseas Citizen of India (OCI) can now invest and be a part of the National Pension Scheme till the age of 75, provided they are in the age group of 65 to 70 years at the time of application.
3. As the entry age for the scheme has been increased, any person who has closed their NPS account will be allowed to start a new account, the revised guidelines state.
4. In addition to the above-mentioned guidelines, if the investor is beyond the age of 65 years decides to invest under the 'Auto Choice’, the maximum equity share will only be 15 percent. Further, the maximum equity exposure will be 50 percent under the 'Active Choice'.
5. The exit rules have also been revised by the PFRDA. Now, subscribers who join the NPS after the age of 65 will be able to take a normal exit after 3 years. Any exit before this time frame will be treated as a premature exit.
6. As per the PFRDA guidelines, the entire amount of the scheme will be paid to the nominee in a lump sum if the subscriber of the NPS account dies.