Improved NPS services
PFRDA to allow NPS subscriber to remain invested in NPS even post retirement
One of the biggest worries among NPS subscribers is the poor show by the fund at the time of one’s retirement. In order to assuage the situation of such NPS members, the PFRDA is considering allowing NPS subscriber to remain invested in NPS even post retirement. Chances of a systematic withdrawal plan (SWP) for NPS subscriber post retirement is being considered instead of annuities. The current performance of the fund schemes is encouraging compared to other retirement savings options. However, the returns offered by annuities pales in comparison at about 7 per cent. At present, subscribers in the NPS have to mandatorily annuitise 40 per cent of their NPS corpus, with the balance allowed a tax free withdrawal.
Speaking at a workshop on the NPS, PFRDA chairman, Hemant Contractor said that the government segments have registered more than 32 lakh subscribers, with the assets from state government crossing the Rs 60,000 crore-mark of the Rs 79,000 crore under the NPS. The NPS with its rising popularity and increased takers will also witness more fund managers staking claim at managing its assets, which will turn the attention to it as the more preferred retirement savings options in the coming years. Watch out for more on the NPS frequently.