National Pension System (NPS) age limit: You can become an NPS subscriber till the age of 65. The age limit was increased by the Pension Fund Regulatory Authority of India (PFRDA) two years ago. A PFRDA circular mentions the benefits, it says, “Since NPS provides a very robust platform to the subscriber to save for his/her old age income security, subscribers who are willing to join NPS at the later stage of life should avail the benefits of NPS. The Annuity rates available in the older age fetch better annuities than that at the age of 60 or less age.”
“Accordingly, the maximum age of joining NPS in the Private Sector, i.e. under All Citizen Model and Corporate model have been increased to 65 years from the existing 60 years,” it added.
Previously, Indian citizens in the age group of 18-60 years were eligible to join NPS on a voluntary basis.
Those joining NPS after the age of 60 can continue in the system up to the age of 70 years and during this period, the subscriber can continue to contribute. According to PFRDA, such subscribers get the same “choice of the Pension Fund as well as the investment choice as is available under the NPS for subscribers joining NPS before the age of 60 years.”
What returns to expect after joining NPS at 65
The NPS calculator of SBI Pension Fund shows that you can expect a monthly pension of around Rs 5000 (Rs 4924) by investing Rs 12,500/month starting from the age of 65 till 70. The expected rate of return here is assumed to be 8%. The actual return may be higher.
Similarly, investing Rs 10,000/month at the same expected rate of return, one can get a pension of Rs 3939/month for life. By investing Rs 5000 per month, you may get a monthly pension of Rs 1969 for life.