PFRDA is considering a change regarding the National Pension Scheme. This is going to further simplify the withdrawal rules. PFRD is in a big preparation regarding this. The Pension Fund Regulatory and Development Authority (PFRDA) intends to introduce a scheme during the second half of this financial year.
According to this plan of PFRDA, instead of the existing system of one-time withdrawal, permission will be given to withdraw 60 percent of the deposit amount in a systematic manner. PFRDA wants to improve the system of withdrawal of money for more and more people under this scheme.
40% amount for investment in annuity
As per the proposal, NPS subscribers will be allowed to systematically withdraw 60 per cent of their corpus after retirement till the age of 75 years, while 40 per cent will have to be invested in annuity, instead of the current system of lump sum withdrawal.
The rule will apply to these people
PFRDA Chairperson Deepak Mohanty said that we are planning to start Systematic Withdrawal Scheme from the second half of this year. Any number of times the amount can be decided by the customer and can be withdrawn in lump sum or on monthly, quarterly, half-yearly or yearly basis. This applies to people in the age group of 60 to 75. He said that the new facility could be launched during the last quarter of the calendar year.
How many people have joined NPS so far During the current financial year, 1.3 million new subscribers of NPS are expected to be added from the non-government sector, more than 1 million users in the previous financial year. Last year NPS had 12 million subscribers and this year it is expected to reach 13 million. At the same time, 54 million people have joined under the Atal Pension Yojana.
