Is it possible to contribute to National Pension Scheme (NPS) up to 70 years? Is it possible to defer annuity payments till that time?
- Sunil Sisodia
The answer to your query would depend on whether you are a government employee or private sector employee. If you are a government employee (or a government sector subscriber), you can contribute to National Pension Scheme (NPS) only till you are 60 years old (or till the age of superannuation prescribed by your service rules). On turning 60, you must use at least 40 per cent of the corpus to buy an annuity from a life insurance company. You have the option to defer your annuity purchase by three years. You also have the option of withdrawing the rest of the money immediately or defer it till your are 70 years old.
If you are a private sector employee, you can contribute to NPS even after your are 60 years old. You can contribute till you are 70 years old. At 70, you must use at least 40 per cent of the money to buy an annuity or defer it by another three years. You have to take out the rest of the money immediately. If you are exiting before you are 70, you have the option to defer withdrawal of the money till you are 70.
This article was originally published on February 16, 2016.
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