NPS rule change: Default option available in NPS Tier II accounts for govt employees; what is it and how will it help you?
Published by Economic Times
Abhishek Kumar's role: Quoted
Abhishek Kumar, founder of SahajMoney, explained that government subscribers investing in NPS Tier II previously had to pick their pension fund managers and allocation percentages themselves, and noted that the default option removes that need.
More of Abhishek's views on retirement
Economic Times explains the PFRDA circular of 22 September 2023 that introduced a default scheme option in NPS Tier II accounts for government sector subscribers. Under it, money is split among three pension fund managers in a set proportion, each investing about 85% in fixed income and 15% in equity, so subscribers need not pick managers themselves. The article covers how to opt in and includes comments from Abhishek Kumar.
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NPS rule change: Default option available in NPS Tier II accounts for govt employees; what is it and how will it help you?