PFRDA set to provide a better option than annuities to NPS members

Mulls raising threshold to Rs 5 lakh from current Rs 2 lakh for exemption from annuity requirement, hiking maximum age to 70 yrs from 65 yrs for NPS entry, a minimum guaranteed product, on-tap license

The pension fund regulator, Pension Fund Regulatory and Development Authority (PFRDA), is considering coming out with a better option for National Pension System (NPS) subscribers than the one offered by the current low-return annuities.
 
Experts said the proposed move would give investors greater flexibility to utilise their pension funds at the time of withdrawal, but cautioned against doing away with annuity.
 
Currently, every subscriber, whose accumulated fund has crossed Rs 2 lakh at the time of retirement or at 60 years of age, has to park 40 per cent of the fund in annuity, giving negative returns after