Senior citizens who have not yet enrolled in the National Pension System (NPS) will have reason to rejoice. The Pension Funds Regulatory and Development Authority (PFRDA) has suggested raising the maximum age of eligibility for the National Pension System (NPS) from 65 to 70 years old.
He said at a virtual press conference, the exit age limit will be raised from 70 to 75 years. A request for proposals (RFP) for the design of such a product will be floated in 15-20 days, according to the PFRDA.
Indians between the ages of 18 and 65 can currently open an NPS account. Bandyopadhyay mentioned that those over the age of 60 are very interested in opening an NPS account and that nearly 15,000 new NPS subscribers aged 60 and up) have enrolled in the last three years.
According to Bandyopadhyay, the recently floated Request for Proposal (RFP) for selection of sponsors of pension funds for NPS has qualified eight pension fund managers, including the previous seven.
Apart from renewing the licences of existing licence holders, PFRDA awarded a licence to Axis Asset Management Company in the current round. However, in order to satisfy the licence conditions, two players-Aditya Birla Sun Life and Kotak Pension Fund-must meet certain regulatory criteria within specific timeframes. The regulator is also considering raising the fees that NPS agents, known as Points of Presence (PoPs), will charge, according to Bandyopadhyay.
India's life expectancy has risen, but the country lacks a strong social security system. There aren't enough retirement options for the elderly. As a result, the decision to raise the NPS's maximum age of entry is a positive one.
The returns on NPS are market-linked and do not have a fixed interest rate. Through different pension funds, money allocated to the NPS account can be invested in up to four asset classes: equities, corporate bonds, government bonds, and alternative assets. These pension funds earn returns based on stock and bond performance.