New Delhi, Aug 12 (IANS) A total of 1.3 lakh minors have been enrolled for early retirement under the NPS Vatsalya Scheme, the Union government informed the Parliament.
In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that 130 thousand minor subscribers are registered under the NPS Vatsalya Scheme from September last year till August 3.
The NPS Vatsalya Yojana, also known as the National Pension System Vatsalya, is a retirement savings scheme designed for minor children in India.
“NPS-Vatsalya promotes inter-generational equity and financial security by encouraging early savings for children as well as promoting a culture and habit of retirement planning across generations,” Chaudhary said.
Under the old tax regime, an income tax deduction under Section 80CCD (1B) up to Rs 50,000 has been extended towards NPS-Vatsalya contribution made by the parent or guardian with effect from April 1.
The scheme is implemented through Points of Presence (PoPs), which include the bank branches and non-bank entities, under the regulation of the Pension Fund Regulatory and Development Authority (PFRDA).
These PoPs operate across India, in all geographies, thereby ensuring extensive coverage and accessibility, the Minister said. He added that the NPS-Vatsalya account can also be opened through an online platform extended by the NPS Trust, further enhancing reach and convenience.
NPS-Vatsalya Scheme, a contributory pension scheme for minors, was launched on September 18, 2024, to create a fully pensioned society.
The scheme is designed for parents/guardians to contribute a minimum of Rs 1,000 per annum with no ceiling on maximum contribution, for their minor subscriber.
On attaining the age of majority, the account of the subscriber can be seamlessly converted into an NPS account.
According to a June survey report by Grant Thornton Bharat, younger Indians, notably those aged 25 years or below, now prefer early retirement. Among this group, 43 per cent desire to retire between 45 and 55 years.
More than half (55 per cent) of respondents expect a monthly pension exceeding Rs 1 lakh. However, only 11 per cent believe their current investments are sufficient to meet these expectations, revealed the survey.
–IANS
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