The National Pension System (NPS) will no longer compel investors to convert 40% of their accumulated retirement corpus into an annuity, as poor yields on annuities and high inflation are translating into negative returns.<\/p>\n\n\n\n
The regulator will soon allow those saving up to \u20b95 lakh to take the whole amount at retirement, up from \u20b92 lakh at present.<\/p>\n\n\n\n
The pension fund regulator is also hoping to launch the first guaranteed return NPS scheme in the coming year.<\/p>\n\n\n\n
Separately, amendments will be made to the PFRDA Act of 2013 to allow NPS members with a balance over \u20b95 lakh to retain 40% of the corpus in the NPS or wind it down over a few years through a system akin to a systematic withdrawal plan.<\/p>\n\n\n\n
Post-retirement, a person has to take 40% of the total corpus as an annuity as per the law\u2019s mandate, and 60% can be commuted and taken as a lump sum.<\/p>\n\n\n\n
The Finance Ministry has announced plans to amend the PFRDA law since Budget 2019-20 and to make legislative changes to override the statutory annuitisation provision.<\/p>\n","protected":false},"excerpt":{"rendered":"
The National Pension System (NPS) will no longer compel investors to convert 40% of their accumulated retirement corpus into an annuity, as poor yields on annuities and high inflation are translating into negative returns. Daily Current Affairs Quiz 2021 The regulator will soon allow those saving up to \u20b95 lakh to take the whole amount […]<\/p>\n","protected":false},"author":404,"featured_media":40859,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1403],"tags":[],"offerexpiration":[],"class_list":["post-40858","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-april-2021"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/40858","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/404"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=40858"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/40858\/revisions"}],"predecessor-version":[{"id":40860,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/40858\/revisions\/40860"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/40859"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=40858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=40858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=40858"},{"taxonomy":"offerexpiration","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/offerexpiration?post=40858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}