This news will make you delighted if you are investing in NPS with the future in mind as well. To bring the withdrawal plan, the Pension Fund Regulatory and Development Authority (PFRDA) is indeed making preparations. As a result, pension account holders will be able to withdraw a lump sum of money once they turn 60. Deepak Mohanty, the chairman of the PFRDA, provided information on this.
Annuity payments account for 40% of the corpus.
In an interview, Mohanty stated, “It is in the beginning stages. We want to present such a plan before the end of the following quarter, or in September. After turning 60, National Pension Scheme (NPS) participants can currently withdraw up to 60% of their retirement fund as a lump payment, with the remaining 40% being required to be paid into a “annuity” (set amount paid each year). Members of the Systematic Withdrawal Plan NPS (NPS) may choose to withdraw their funds up until the age of 75.
There will be numerous withdrawal alternatives available.
The option of monthly, quarterly, half-yearly, or yearly withdrawals is available to members. Many individuals have asked why we can’t continue with the money, Mohanty added. Why should I purchase an annuity when my investments are yielding healthy returns? I want to take money out on a monthly or quarterly basis. Currently, we are unable to offer such a choice. We are thinking of such a product in such a circumstance. The PFRDA has raised the entry age to 70 years and the exit age to 75 years in light of the longevity of the populace.
When questioned about the PFRDA Act modification,
Mohanty responded, “We have given the government some suggestions.” The recommendation of a different pension product is the most significant one we have made. In the first half of this fiscal year, he said, the assets under management (AUM) in pension plans will surpass the record level of Rs. 10 lakh crore. The shareholders’ consistent contributions are the cause of this. The total value of the assets under management, which now total Rs 9.58 lakh crore, includes NPS, Atal Pension Yojana (APY), and NPS Lite. We have reached an AUM of almost Rs 9.5 lakh crore, he declared. No one should thus be shocked that our AUM would surpass Rs 10 lakh crore by the middle of the current financial year.
It relies on a variety of other factors, he claimed.
These include the market’s performance and the fund’s “return.” According to Mohanty, the NPS corpus size is 9.29 trillion rupees out of a total of 9.58 trillion rupees. The Atal Pension Yojana fund is made up of the remaining Rs 28,538 crore. According to him, the number of NPS users surpassed 10 lakh just last year. “This year, we anticipate that there will be over 13 lakh shareholders.”
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