NPS Pension News: The PFRDA is preparing to introduce a new version of the NPS scheme. In this new version, investors may have the option to allocate 50% of their investments into equity funds until the age of 45.
As a result, there is a significant possibility that people will receive more money upon retirement. This will replace the current system, where the allocation to equity funds starts reducing gradually from the age of 35.
In this new version of NPS i.e. National Pension Scheme, the government is planning to start a New Balanced Life Cycle Fund. This can also attract new youth. This scheme will help people to create a corpus till retirement.
PFRDA’s proposed scheme allows for a substantial allocation to equity funds over an extended period. This scheme proposes to extend the investment tenure in equity to 10 years, which could increase the likelihood of earning higher returns.
According to Deepak Mohanty, Chairman of PFRDA, the NPS Lifecycle Scheme could start in July or August. He highlighted that this fund will feature an extra option in auto-choice, allowing for equity allocation of up to 50%. However, tapering will commence only post the age of 45, aiding subscribers in accruing higher corpus in their retirement funds.
Deepak Mohanty also mentioned that the new version of the scheme will allow investors to allocate more funds into equity for extended periods. He also discussed the Atal Pension Scheme, noting that approximately 1.22 lakh new individuals joined it during the previous fiscal year.
Since its inception, this scheme has witnessed the highest number of enrollments in any financial year so far. He further stated that he anticipates an increase in numbers in 2024.
