There are many changes from train ticket booking to pension from 1 October, including the rules of National Pension System (NPS). The Pension Fund Regulatory and Development Authority (PFRDA) is going to make many important changes in the National Pension System from 1 October 2025.
Under the new NPS rule, now non-granting employees can select an option for investment in equity up to 100 %. This change has been made for the purpose of giving more returns to investors, but it will be on the investors’s rescue, as it includes the risk of the stock market. Along with this, another change will be introduced new multiple scheme framework (MSF), under which investors will be able to manage different schemes on the same PRAN number.
Exit and withdrawal rules will also change
Till now, when investors used to invest once, they used to have an option to get exit only after retirement, but now even after 15 years, it can get the option of exiting it. Apart from this, like PF for the needs like studies, medical expenses or home, partial withdrawal process will be easier. This will give investors a flexibility framework.
This rule will not change
There will be no change in the rules of tax regarding withdrawal. Out of 80 percent of the lump sum withdrawal, 60 percent tax discount will be given, while the remaining 20 percent will be taxable according to the slab. Last year, the government launched Unified Pension Scheme (UPS), which was only for central employees. However, its response is not good and now he has been given the option to return to the Nations Pension System.
What is the benefit for investors
100 % amount will be expected to get more returns than giving an opportunity to invest in NPS, which can be helpful in raising their wealth rapidly. Also, the opportunity for equity investment and easy withdrawal rules, will make NPS more attractive to investors. This will also help investors to extract funds and fulfill their money in emergency.
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