There is good news for National Pension Scheme (NPS) investors. The Pension Fund Regulatory and Development Authority (PFRDA) is preparing to make major changes in the NPS scheme. This will bring more money to pensioners after retirement. Also, there will be more returns on NPS investment. Preparations are being made to increase the equity share in this scheme. A ‘New Balanced Life Cycle Fund’ will be created to make the pension scheme attractive among the youth.
What is the plan
Under the PFRDA scheme, money has to be invested in equity funds for long term investment. In this scheme, equity investment will gradually reduce after the pensioner reaches the age of 45 years. This reduction starts from the age of 35 years of the investor. Shareholders joining this scheme can invest more in equity funds till the age of 45 years. After this, investment in equity will be reduced. This will help them to create a good fund till retirement.
What is the plan
The pension regulator has extended the equity investment period for the next 10 years, allowing investors to take advantage of the stock market. This will give higher returns. Investors in NPS will benefit from higher investments in equity funds till the age of 45. This will result in more money accumulating in their account till retirement.
read this also
When will the plan come?
Pension Fund Regulatory and Development Authority Chairman Deepak Mohanty said, ‘We will bring a new balanced life cycle fund which will invest more in equity from July to September. People who opt for equity in NPS can invest for a long time. Also, there will be a balance between risk and return. In the financial year 2023-24, 1.22 lakh new pensioners have joined the Atal Pension Yojana. According to the Pension Fund Regulatory and Development Authority, the total number of subscribers joining the Atal Pension Yojana is expected to cross 6.62 crores by June 2024.
