Retirement is not just leaving your job. It is about living life fully without money worries. The National Pension System (NPS) is a good option for this.
Now, a big change is coming to NPS. On NPS Day (October 1), the Pension Fund Regulatory and Development Authority (PFRDA) released a consultation paper. The goal is to give people a safer, more secure, and inflation-adjusted pension after retirement.
Proposal for 3 New Pension Schemes
The PFRDA has proposed three new schemes under the National Pension System (NPS). Each scheme is for people with different needs. The current NPS is flexible, but the guarantees were not strong. These new schemes will give more options for pensioners.
- Scheme 1 – Flexible Scheme: People can withdraw money as needed. It will be a mix of Systematic Withdrawal Plan (SWP) and annuity.
- Scheme 2 – Assured Benefit: This scheme sets a target pension and increases it every year based on inflation.
- Scheme 3 – Pension Credits Model: People will get a fixed monthly pension for each pension credit, giving predictable pension amounts.
Feedback from the Public
PFRDA wants suggestions from pensioners, investors, experts, and the public. People can give their opinions online until October 31, 2025. Finance Minister Nirmala Sitharaman said that every citizen’s economic independence and dignity is important for a developed India by 2047. Pension planning is important for everyone.