Changes in rules: PFRDA made changes in the rules related to the National Pension System, now it can be included till the age of 70

 The Pension Fund Regulatory and Development Authority (PFRDA) has made some changes in the National Pension System (NPS) to make it more attractive. Under this, the maximum age to join NPS has been increased from 65 to 70 years.


In a circular issued by the PFRDA regarding the amended rules, it has been said that any Indian citizen or Overseas Citizen of India in the age group of 65-70 years can join NPS and invest till the age of 75 years.

50% of the fund will be able to invest in equities

If you take advantage of this scheme after 65 years of age, you will be able to invest 50% of your investment in equity. If a person joins NPS after the age of 65 years then the maximum equity exposure will be only 15% in the default mode of 'Auto Choice'.

At the same time, such subscribers can opt for the maximum equity exposure in pension funds and asset allocation up to 15% in auto mode and 50% in active choice mode, if they so desire. Now any NPS subscriber will have the freedom to allocate his/her contribution to different asset classes through equitable choice or auto choice.

What is National Pension Scheme?

NPS was started in January 2004 for government employees. In 2009 it was opened to all categories of people. Any individual can contribute regularly to the pension account during his/her working life.

He can also withdraw a part of the accumulated corpus in one go and use the remaining amount to get regular income after retirement. The NPS account grows with the individual's investment and returns on it. Central government, state government, private sector employees and common citizens can also invest in this scheme.

NPS gave returns of up to 12-15% in the last 1 year

NPS customers have got around 12.5-17% returns from equities in a year. Preferential shares have given 12-14% returns, while NPS customers have earned 10-15% returns through investment in government bonds.