The good news is that now senior citizens above age 65 (up to 70 years)are also allowed to open a National Pension System (NPS) account. Earlier, Pension Fund Regulatory and Development Authority (PFRDA) had increased the maximum age of joining under NPS from 60 years to 65 years of age. Now, any Indian Citizen, resident or non-resident, and Overseas Citizen of India (OCI) between the age of 65-70 years can also join NPS and continue or defer their NPS Account up to the age of 75 years.
Going forward, anyone between the age of 18 and 70 years may open an NPS account. Those Subscribers who have earlier closed their NPS Accounts are permitted to open a new NPS Account as per increased age eligibility norms.
The new rules regarding the entry age stand to benefit the senior citizens especially those who wanted to open the account and save for their post-retirement needs. By investing in NPS, they can now plan for a regular pension till their lifetime. The amount invested in NPS also comes with tax benefits and helps senior citizens save tax. On opening an NPS account, a Tier I account gets opened automatically, while the Tier II account can be opened to keep savings liquid as it comes with no lock-in period.