The Centre today increased the maximum age of joining under National Pension Scheme (NPS) to 65 years of age from existing 60 years.
In an official statement issued here, the Pension Fund Regulatory and Development Authority (PFRDA) said that the maximum age of joining NPS for the private sector has been increased to 65.
"In continuance of the several initiatives under taken by PFRDA during the last few years to increase the pension coverage in the country, it has now increased the maximum age of joining under NPS-private sector (all citizen and corporate model) from the existing 60 years to 65 years of age," it said.
According to the pension regulator, now, any Indian Citizen, resident or non-resident, between the age of 60- 65 years, can also join NPS and continue up to the age of 70 years in NPS.
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, it added.
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 scheme for subscribers joining 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 the scheme.
In this case, the subscriber will be required to utilise at least 40 per cent of the corpus for purchase of annuity and the remaining amount can be withdrawn in lump sum.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 in the NPS, he/she will be allowed to do so, but in such case, the subscriber will have to utilise at least 80 per cent of the corpus for purchase of annuity and the remaining can be withdrawn in lump sum," the statement said.
In case of subscriber's death, the entire corpus will be paid to the nominee.
"The increase in joining age will provide the options to the subscribers who are at the fag end of the employment and expecting lump sum amount at the time of retirement, but willing to defer their retirement planning for future, to open the NPS account and contribute the lumpsum corpus to NPS for better fund management by professional fund manager to fetch better returns and plan for the regular income after some time," it said.
"This initiative will allow a larger segment of the society particularly senior citizens to reap the benefits of NPS and plan for their regular income," it added.