New Delhi: Pension Fund Regulatory and Development Authority (PFRDA) on Sunday announced that investors joining the National Pension Scheme after 65 years of age will be allowed to allocate up to 50% of their funds in equity. The decision has been taken to make the retirement scheme more attractive for senior citizens.


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However, for subscribers joining the retirement plan beyond the age of 65 years, the maximum equity exposure will be capped at 15% to invest under the default 'Auto Choice' option. 


Currently, NPS contributions are invested by the PFs in different investment instruments such as equity, corporate bonds, government securities and alternate assets. Investors are allowed to choose their PFs under NPS. 


Meanwhile, the pension fund regulating body has also guidelines on entry and exit following an increase in the maximum age for joining the NPS from 65 years to 70 years of age. Similar, the entre age of investing in the National Pension Scheme has been eased to 18-70 years from 18-65 years.


"The subscriber, joining NPS beyond the age of 65 years, can exercise the choice of PF (pension fund) and asset allocation with the maximum equity exposure of 15 per cent and 50 per cent under Auto and Active Choice, respectively," a PFRDA circular said. 


Who can invest in National Pension Scheme? 


With the new rules in place, any Indian citizen between the age of 18-70 years can invest in the National Pension Scheme (NPS). An Overseas Citizen of India (OCI) can also invest in the retirement scheme, according to a circular on the revised guidelines by PFRDA. Also Read: Exempt pension from income tax to provide relief to senior citizens: Pensioners' body to PM Modi


Also, NPS subscribers who had closed their NPS accounts have also been permitted to open a new account as per increased age eligibility norms. Also Read: Samsung Galaxy Z Fold 3, Z Flip 3 to come with Phantom Silver and Lavender colours in India


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