The Pension Fund Regulatory and Development Authority (PFRDA) plans to introduce a new feature in the National Pension Scheme (NPS) during the second half of this year. According to Deepak Mohanty, the chairperson of PFRDA, this new feature will allow systematic withdrawal from the NPS after retirement.
Under the proposal, NPS subscribers will be able to withdraw 60% of their contributions systematically over time instead of a one-time withdrawal. This option will be available until the age of 75, while the remaining 40% will need to be used for annuity payments.
Mr. Mohanty explained that subscribers can determine the withdrawal amount as often as they wish, and they can choose to receive the funds as a lump sum or in regular intervals such as monthly, quarterly, half-yearly, or annually. This feature will apply to individuals between the ages of 60 and 75.
The implementation of this new feature is expected to take place in the last quarter of the year, as the necessary software updates need to be made.
Mr. Mohanty also mentioned that the Assets Under Management (AUM) of the NPS and the Atal Pension Yojana (APY) currently amount to ₹9.6 lakh crore and are projected to surpass ₹10 lakh crore by September.
In the current fiscal year, the NPS aims to enroll 13 lakh new subscribers from the non-government sector, which is higher than the 10 lakh new subscribers enrolled in the previous year.