Even as the Unified Pension Scheme, which offers assured pension, has failed to gain much traction among government employees, the government is considering bolstering the market-linked National Pension System with additional flexibility and options for the subscribers.

The new options to be available to the NPS subscribers include wealth maximisation, assured benefits with inflation protection, and predictable retirement income through innovative mechanisms such as pension credits.

The current NPS is a transparent, mark-to-market defined contribution pension scheme that emphasises fiscal prudence and is largely focused on the accumulation phase. Thereafter, it mandates at least 405 annuitisation and a maximum 60% lumpsum tax-free payout at the time of retirement at the age of 60.

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