Good news for NPS holders! New fund will be added to NPS, more money will be available on retirement, know details here

Pension fund regulator PFRDA To make the New Pension System (NPS) attractive among the youth, the government is preparing to introduce a 'New Balanced Life Cycle Fund'. This will help the shareholder to build a good fund till retirement.

These will be the new rules

Under this proposed scheme of PFRDA, more investment amount will be allocated in equity funds for a long time. Under this scheme, equity investment will gradually decrease when the shareholder turns 45 years old, whereas currently this reduction starts from 35 years. In this way, shareholders joining NPS will get the facility to allocate more investment amount in equity funds till the age of 45. This will help them in creating a good fund till retirement.

New Balanced Life Cycle Fund will be launched in July-September quarter

Pension Fund Regulatory and Development Authority (PFRDA) Chairman Deepak Mohanty said here on Friday that he will launch a 'New Balanced Life Cycle Fund' in the second quarter (July-September) to allocate investments to equity share funds for the long term. This will enable higher allocation to equity funds for the long term.

these will be the rules

He said in a program related to Atal Pension Yojana that under this new scheme of NPS, equity investment will gradually decrease from the age of 45 years, whereas currently this reduction starts from 35 years. If this happens, then people choosing NPS will be able to invest more money in equity funds for a long time. This will increase the pension fund in the long term while there will be a balance between risk and return.

So many people joined Atal Pension Yojana

Referring to the Atal Pension Yojana (APY), Mohanty said that 1.22 lakh new subscribers joined APY in the last financial year 2023-24. This is the largest number ever in any financial year since the scheme was launched. He said that 1.3 crore subscribers are expected to join this scheme in the current financial year. According to PFRDA, the total number of subscribers joining APY is expected to cross 6.62 crores by June 2024.