A Tier I account is automatically created when an NPS account is formed, whereas a Tier II account, which has no lock-in period, can be created to keep savings liquid.
The good news is that older adults can now open a National Pension System (NPS) account up to 70 years of age. The maximum age to join the NPS has already been raised by the Pension Fund Regulatory and Development Authority (PFRDA) from 60 to 65 years of age. Any Indian citizen, whether a resident or a non-resident, as well as an Overseas Citizen of India (OCI), who is 65 to 70 years old, can now join NPS and maintain or postpone their NPS Account up to the age of 75.
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The NPS account can now be opened by anyone between the ages of 18 and 70. As a result of enhanced age eligibility, subscribers who previously closed their NPS accounts are allowed to register a new NPS account. The new entrance age regulations will help senior citizens, especially those who intended to create an account and start saving for needs after retirement. They can now prepare for a consistent pension for the rest of their lives by investing in NPS. The amount invested in NPS also has tax advantages, which saves taxes for senior folks.
A Tier I account is automatically created when an NPS account is formed, whereas a Tier II account, which has no lock-in period, can be created to keep savings liquid. Even in retirement, one should allocate funds to stocks while taking inflation and life expectancy into account. With NPS, you can choose to divide your investment between equities and debt products like corporate bonds and government securities.
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To control inflation while you’re retired, NPS gives you the choice to divide your money between equity and debt investments like corporate bonds and government securities. Those who join NPS after turning 65 can choose between PF (pension fund) and asset allocation, with the maximum equity exposures being 15% and 50% under the Auto and Active Choice options, respectively.
