NPS Will Offer More Flexible Investing Options

The National Pension System (NPS) has undergone many changes since inception to cater to the needs of the retired. That said, it is still a work in progress in many ways. One of the biggest changes set to take place is the expansion of the equity basket in the Tier II account of NPS to 100 per cent from the present 75 per cent. Further, NPS seeks to settle the debate on assured returns with a new product that it plans to launch in 6-8 months. Plans are also afoot to come up with options for annuity products. At present, subscribers are mandated to buy annuity using 40 per cent of the retirement corpus. But low returns and lack of tax efficiency make them unfavourable. In an interview with Outlook Money, Supratim Bandyopadhyay, chairman of the Pension Fund Regulatory and Development Authority (PFRDA), which regulates NPS and the Atal Pension Yojana, spoke about changes that are in the...