PFRDA Set To Launch New NPS Scheme With 50% Equity-Debt Mix
The proposed scheme will increase the investment in equity by ten more years.
This new version of the NPS will replace the existing system, where the allocation of equity funds decreases gradually starting at age 35.
Good news is around the corner for those who invest in the National Pension Scheme (NPS). The Pension Fund Regulatory and Development Authority (PFRDA) has been preparing to introduce a new version of the National Pension Scheme (NPS), making it very attractive to investors. This new version of the National Pensions Scheme (NPS) will allow investors to retain 50 per cent of their investment in equity funds until they reach 45. This new version of the scheme is expected to give more money to people at the time of their retirement. It will replace the existing system, where the allocation of equity funds decreases gradually starting at 35.
In this new version of the National Pension Scheme (NPS), the government of India is planning to introduce a ‘New Balanced Life Cycle Fund’, which is expected to attract the youth as well. This new scheme will help people create a corpus until retirement. Under this new scheme proposed by PFRDA, more investment amounts can be allocated to equity funds for a long time. The proposed scheme will increase the investment in equity by ten more years, to get more returns from the market.
PFRDA chairman Deepak Mohanty, briefing the media during the Annual Felicitation Programme for Atal Pension Yojana (APY) in New Delhi, said the NPS balance lifecycle scheme could be introduced in July or August. He said, “The fund will be an additional option in the auto-choice where equity allocation can be a maximum of up to 50%, but the tapering would start only after 45 years of age. This will help subscribers accumulate more corpus in their retirement fund.”
Deepak Mohanty also added that this new version of the scheme will allow them to invest more in equity funds for a long time. He also mentioned the Atal Pension Yojana (APY) and revealed that in the last financial year (2023–24), around 1.22 lakh new subscribers joined APY. It is the highest number so far in any financial year since the scheme was started. He also added that the number is expected to increase in 2024.
