Among many rapid decisions, this time the government took the decision of increasing the maximum age limit in National Pension Scheme (NPS). Before this decision, the maximum age to apply for the National Pension Scheme was 60 years. And the person in the age group of 18 years to 60 years could apply for the scheme. And now, the government increased the age limit to 65 years of age. People who are not the government employee can also take the benefit. According to the decision taken by Ministry of Finance this Wednesday.
This decision enables corporate employees and people who are self-employed to take the benefit of the scheme. By this scheme, they will get fixed regular income after their retirement. People who are now in the age range of 60 – 65 years will also be able to join the National Pension Scheme and can contribute and avail the benefits of the scheme until they turn 70. The Pension Fund Regulatory and Development Authority (PFRDA) is the monitoring body which takes care of the NPS and the enrollment of people who are above 60 years of age.
The rules and choices of the pension fund will be same for the people who are above 60 years of age as they are for the subscribers who are under 60. The decision by the Ministry of Finance allows the major section of the society and especially senior citizens take the benefit of the NPS.
There are certain options available for the people who are joining after their 60s and before 60s. People joining after their 60s have a choice of taking a normal exit from the scheme after 3 years for which they need to purchase annuity using their 40% corpus and they can withdraw remaining money in lump-sum whereas if they wish to take exit before the completion of 3 years, they need to purchase the annuity using their 80% of corpus and withdraw remaining amount. If the subscriber dies due to some reasons the nominee gets the entire corpus amount.
So, who all are eligible for the National Pension Scheme?
Initially, the eligibility criteria for the NPS was that the person should be in the age group of 18-60 years and now it changes to 18-65 years of age.
Documents required for the NPS:
1. Complete application form.
2. Proof of identity.
3. Proof of address.
4. Age/date of birth proof.
National Pension Scheme Online Application Form Link:
Well, the application form link is of State Bank of India, but the same is accepted at any nationalized bank. So, download the form fill it up and take it to your nationalized bank along with the above-mentioned documents.
To know more about the details and FAQs visit the link