NPS Joining Age Increased: 10 Things To Know About Latest NPS Rules

Pension regulator PFRDA (Pension Fund Regulatory and Development Authority) has increased the maximum age for joining NPS (National Pension Scheme) to 65, from 60 earlier. This will help more people get pension coverage. Opening of an NPS account has also been made easy. It can be done online. After the latest change, any Indian Citizen, resident or non-resident between the age of 60- 65 years can also join NPS and continue up to the age of 70 years in NPS. “Due to the better healthcare facilities and increased fitness, along with the opportunities and avenues available in the private sector as well as in the capacity of self-employment, more and more people in their late 50s or 60s are now living an active life allowing them to be employed productively,” the Ministry of Finance said, explaining the rationale of increasing the NPS joining age.

10 Things To Know About Latest NPS Rule Change


The person joining NPS after the age of 60 will have the same choice of the pension fund as well as the investment choice as is available under the NPS for subscribers joining NPS before the age of 60 years.

The subscriber who joins after 60 will have an option of normal exit from NPS after completion of 3 years in NPS.

But the subscriber will be required to utilize at least 40 per cent of the corpus for purchase of annuity and the remaining amount can be withdrawn in lump-sum.

Annuity in the context of NPS annuity refers to the regular payment that will be received by the subscriber from the Annuity Service Provider after his exit from NPS.

A subscriber can exit from NPS before completion of three years in the NPS. But in this case the subscriber will have to utilise at least 80 per cent of the corpus for purchase of annuity and the remaining can be withdrawn in lumpsum.


In case of unfortunate death of the subscriber during his stay in NPS, the entire corpus will be paid to the nominee of the subscriber.

The increase in NPS joining age will provide more options to subscribers who are at the fag-end of the employment and expecting lump-sum amount at the time of retirement.

The person can contribute the lump-sum corpus to NPS for better fund management by professional fund manager to fetch better returns and plan for the regular income after some time.

The annuity rates available in the older age fetch better annuities than that at the age of 60 or less age.

“This initiative will allow a larger segment of the society particularly senior citizens to reap the benefits of NPS and plan for their regular income,” the finance ministry said.

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