New Pension System / This rule of NPS is going to change, now you will get more money on retirement

Soon, the option of investing in a new fund is going to be available under the new pension system. The Pension Fund Regulatory and Development Authority (PFRDA) has started preparations to make the New Pension System (NPS) attractive for the youth. For this, the authority is going to introduce a fund called New Balanced Life Cycle. This will help a person to create a good fund till retirement.

Vikrant Shekhawat : Jun 23, 2024, 05:36 PM

New Pension System: Soon, the option of investing in a new fund is going to be available under the new pension system. The Pension Fund Regulatory and Development Authority (PFRDA) has started preparations to make the New Pension System (NPS) attractive for the youth. For this, the authority is going to introduce a fund called New Balanced Life Cycle. This will help a person to create a good fund till retirement. Under this proposed scheme of PFRDA, more investment amount can be allocated in equity funds for a long time. Under this scheme, equity investment will gradually decrease when the shareholder turns 45 years old, whereas currently this reduction starts from 35 years.

Plan to introduce New Balanced Life Cycle Fund

In this way, the pensioner joining NPS will get the facility to allocate more investment amount in equity funds till the age of 45. This will help them to create a good fund till retirement. PFRDA Chairman Deepak Mohanty said on Friday that we will bring a new balanced life cycle fund in the second quarter (July-September) to allocate investments in equity share funds for a longer period of time. This will enable more allocation in equity funds for a longer period of time.

This is how it will benefit

He said in a program related to Atal Pension Yojana that under this new scheme of NPS, equity investment will gradually decrease from the age of 45 years, whereas currently this reduction starts from 35 years. If this happens, people opting for NPS will be able to invest more amount in equity funds for a long time. This will increase the pension fund in the long run while a balance between risk and return will also be established.

Referring to the Atal Pension Yojana (APY), Mohanty said that in the last financial year 2023-24, 1.22 lakh new shareholders joined APY. This is the highest number ever in any financial year since the scheme was started. He said that 1.3 crore subscribers are expected to join this scheme in the current financial year. According to PFRDA, the total number of subscribers joining APY is expected to cross 6.62 crores by June 2024.