National Pension Scheme age limit has been increased in India. Established Government of India The Pension Fund Regulatory and Development Authority (PFRDA) of India has announced that the upper age limit for joining the National Pension Scheme (NPS) has been increased from the existing 60 years to 65 years.
National Pension Scheme age limit increased to 65
National Pension Scheme age limit has been increased in the country. Currently, the age limit to join National Pension Scheme is 60 years. According to reports the Chairman of the Pension Fund Regulatory and Development Authority has confirmed that the pension regulator’s board had approved the change to increase the National Pension Scheme age limit from 60 years to 65 years.
It was reported that the National Pension Scheme was currently open for people between 18 years and 60 years. The Board of the Pension Fund Regulatory and Development Authority has approved raising the age limit from the existing 60 years to 65 years for joining. Though, the National Pension Scheme has provisions that permit the contributors to contribute up to the age of 70 as well.
This means that the existing scheme had the option of making contributions as well as continuing the scheme up to the age of 70 years.
The move to increase National Pension Scheme age limit is aimed at
It has been stated in a report that the aim of increasing National Pension Scheme age limit from the existing 60 years to 65 years is to open up pensions to sectors where there is no provision for a pension for the employees. It was further mentioned in the report that due to a majority of the workforce in India working in the unorganized and informal sector most of them do not get pension facility after retirement.
According to the available data, only 15 to 16 per cent of the total number of employees in the country are covered under various pension schemes. It must be noted that the National Pension Scheme is currently the ‘lowest-cost pension product across the globe’.
Another reason of bringing in the reforms in the National Pension Scheme is to facilitate “Portability”. Furthermore, it will also facilitate the transfer of superannuation funds by making the National Pension Scheme more attractive and customer-friendly for the existing as well as new consumers.