Monday, October 3, 2022

Subscribers will be able to withdraw full money from NPS! PFRDA approved, know its advantages and disadvantages

NPS Withdrawal News Update: The news of Zee News has been stamped once again. The Pension Fund Regulatory and Development Authority (PFRDA) has allowed the subscribers of the National Pension System to withdraw their entire money. PFRDA has said that those subscribers whose total pension corpus is Rs 5 lakh or less, can withdraw their entire money without buying an annuity. 

Full money can be withdrawn from NPS, but…

Pension regulator PFRDA has said that the subscriber whose pension amount accumulated in the Permanent Retirement Account is Rs 5 lakh or less or as per the limit fixed by the authority, such subscribers will have the option to withdraw the entire pension amount without buying an annuity. Buying an annuity here means buying a pension plan from insurance companies. 

what were the rules till now?

At present, if NPS subscribers whose total corpus is more than Rs 2 lakh, at the time of retirement or turning 60, they are required to buy an annuity from insurance companies. Subscribers can withdraw 60% of their money in a lump sum, but it is mandatory to buy an annuity with the remaining 40%.

ALSO CHECK: Get a tremendous discount with 1mg Coupon Code and Fernsnpetals Vouchers

Let us tell you that NPS subscribers can withdraw money from their account only after three years, but for this also some conditions are fixed. In case of withdrawal before maturity, this amount cannot exceed 25% of the total contribution. This partial withdrawal can be done for children’s education, children’s marriage, buying a house, or for treatment of any serious illness. NPS subscribers can make such partial withdrawals only thrice during the entire tenure. One thing to note is that all these withdrawals are absolutely tax-free under Income Tax rules.  

Subscribers’ right to get pension will end

However, PFRDA has also clarified that thereafter the right of such subscriber to receive any pension or other amount under NPS or from the government or employer will cease. Apart from this, the pension regulator has also given another relief to the subscribers. In the gadget notification, PFRDA has said that the lump-sum withdrawal limit before maturity in NPS has been increased, earlier subscribers could withdraw Rs 1 lakh, now they can withdraw Rs 2.5 lakh. 

Entry-exit age extended in NPS

Pension regulator PFRDA has increased the age limit for entry in National Pension System (NPS) from 65 years to 70 years, i.e. any 70 years old person can start investing in NPS. While the exit limit has been reduced by PFRDA to 75 years. That is, they can now continue the NPS account till the age of 75 years. The maturity limit for all other subscribers is 70 years. 

People above 60 years of age have increased interest in NPS 

PFRDA says that when we increased the age limit for entry in NPS from 60 to 65 years, during three and a half years, 15 thousand subscribers opened an account in NPS, whose age was above 60 years. PFRDA chairman Supratim Bandyopadhyay said that therefore we thought of increasing the upper age limit further. 

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img
spot_img

Most Popular

spot_img

Latest

Use of phone SIMs will be heavily prosecuted; users of applications like WhatsApp and Telegram who use false IDs risk receiving a year in...

Making a fake ID, using a bogus identity on applications like WhatsApp, Telegram, and Signal, or obtaining a SIM card by providing false documentation...

RBI Repo Rate: A shock to the public before the festive season, EMI will be expensive, RBI increased repo rate by 50 basis points

Inflation Rate: The Reserve Bank of India (RBI) has increased the repo rate by 50 basis points. This will also make your EMI costlier....

Sugar Production: Now the price of sugar will be lower, the sugar mill going to open next month, know the reason

Excess production of sugar in India: There are signs of a reduction in the price of sugar in the country. The operation of sugar...

Due to a current supply issue, the decision to require 6 airbags in cars was postponed, according to Gadkari. The rule will now take...

The decision to require six airbags in M1 category vehicles with up to eight seats has been postponed by the government by one year....

Actress Neha Malik wreaked havoc in just a top, striking a killer pose while sitting near a swimming pool.

Neha Malik Photo: Bhojpuri actress Neha Malik is constantly criticized for her appearance. The actress has made a name for herself in the Bhojpuri...

Most Popular

Subscribe

* indicates required