Age limit to join National Pension Fund raised to 70

The board of the Pension Fund Regulatory and Development Authority (PFRDA) has approved increasing the age limit for joining the National Pension System (NPS) from 65 to 70, with no ceiling on contributions provided the sources are declared.

The pension regulator will also allow subscribers to exit the NPS at up to 75 years of age. The previous exit age was capped at 70. The yearly contribution amount is flexible with the lowest investment amount being INR8,000 ($109) per annum, The Financial Express reported quoting Mr Supratim Bandyopadhyay, PFRDA chairman.

Previously, the age bracket for opening an NPS account was 18 to 60 years, with the age ceiling later extended to 65 years.

In India, the pension market is fragmented and total contributions under various pension plans are less than INR30tn with only 126.4m beneficiaries. The total deposits in various pension funds represent only 14% of India’s GDP.

Mr Bandyopadhyay said previously that around 15,000 people aged above 60 joined the NPS after the entry age ceiling was raised from 60 to 65 in 2018.

Source: Asia insurance review

News Update (insurancealerts.in)