The new plan is expected to be ready by September or October this year. (Representational)
Pension fund regulator PFRDA is planning to introduce a systematic withdrawal plan to give flexibility to pension account holders to withdraw a lump sum fund as per their choice on completion of 60 years.
"The new plan will allow NPS Subscribers to periodically withdraw - either monthly, quarterly, half-yearly or annually till the age of 75 years," PFRDA Chairperson Deepak Mohanty told NDTV.
The new plan, which is expected to be ready by September or October this year, will enable the subscribers to get a steady return till the age of 75 years, he added.
At present, the subscribers of the National Pension Scheme or NPS can withdraw up to 60 per cent of the retirement corpus after turning 60 years as a lump sum while the remaining 40 per cent mandatorily goes into buying an annuity.
"This plan will be attractive for those NPS subscribers who do not wish to withdraw 60 per cent of their corpus at one go," said Mr Mohanty.
Pension Fund Regulatory and Development Authority or PFRDA increased the entry age up to 70 and the exit age to 75 keeping in view longevity.
NPS is a portable retirement savings account. Under the NPS, the individual contributes to their retirement account. The employer can also co-contribute for the social security of the employee.
NPS comprises contributions from government employees and the other part is the private sector, Mr Mohanty had said earlier, adding the government sector is on autopilot because they keep coming on their own, but there is a need to grow on the private side.