The Pension Fund Regulatory and Development Authority (PFRDA) administering the National Pension Scheme (NPS) has agreed on increasing the age limit for subscribing to the scheme to 70 years from 65 years with no ceiling on the maximum investment amount. Nonetheless the subscriber would need to declare his or her income sources.
The move would facilitate contributions to be made into pension scheme up to 75 years of age. During the session of the MCC Chambers, PFRDA Chairman Supratim Bandopadhyay iterated that the yearly investment amount in the pension scheme is kept flexible with the minimum investment amount at Rs. 8000 per year.
Earlier for subscribing to the NPS account age requirement was between 18 to 60 years. Later it was changed to 65 years.
NPS that parks corpus primarily in four of the asset classes has got the maximum return from equity at 12.45%, which is followed by other instruments such as corporate bond (10.07%), central government bonds 10% and state government bonds 9.89%. Investment in government securities has yielded 9.64%. All these have been for a period of 11 years, Bandopadhyay said.