PENSIONERS BIG UPDATE: If you want to live a comfortable life after retirement, then there is good news for you. The government has prepared for major changes to make the National Pension System (NPS) more attractive.
Pension Fund Regulator PFRDA claims that this will make more money on retirement and people will get a huge amount in their hands. Let us know what changes are going to happen and how will benefit you.
More Investment in Equity for Higher Returns
To get more returns on your investment, now there is a plan to increase investment in equity (stock market). To attract people, especially the youth, towards NPS, PFRDA is preparing to bring a new fund “New Balanced Life Cycle Fund”.
This fund will help the shareholder to create a good fund till retirement. Under this proposed scheme of PFRDA, more investment amounts can be allocated in equity funds for a long time.
The special thing is that under this scheme, even when the shareholder turns 45 years old, the equity investment will gradually decrease, whereas now this reduction starts from the age of 35.
How Will a Big Fund Be Created
The pension regulator has talked about increasing investment in equity for the next 10 years. Its purpose is to get more returns than the market.
In this way, shareholders joining NPS will get the facility to allocate more investment amounts in equity funds till the age of 45. This will help them in creating a good fund till retirement.
When will this new scheme come
Pension Fund Regulatory and Development Authority (PFRDA) Chairman Deepak Mohanty said on Friday, “We will introduce ‘New Balanced Life Cycle Fund’ in the second quarter (July-September) to allocate investments in equity share funds for a long time.
This will provide an opportunity to invest more in equity funds for a long time and investors will get the benefit of the market. Currently, this reduction starts from the age of 35 years.”
The balance will be created between risk and return
The PFRDA chief said, that if this happens, then people choosing NPS will be able to invest more amount in equity funds for a long time. This will not only increase the pension fund in the long run but will also establish a balance between risk and return.
