Now Systematic Withdrawals for Pension Schemes
Pension Fund Regulatory and Development Authority (PFRDA) of India is looking to get the systematic withdrawal plan where the individuals can withdraw fixed sum from their pension funds after fifteen to twenty years of their retirement.
PFRDA Chairman, Hemant Contractor said the proposal was discussed with Union Finance Ministry to provide help to individuals to withdraw fixed amount at regular intervals. He also said the number of new applicants is also on rise. Almost 7,000 to 8,000 new subscribers join Atal Pension Yojana every day, added Contractor. Based on the growing numbers of people opting for Atal Pension Yojana, the PFRDA chairman expects the new withdrawal system to attract more applicants.
Role of PFRDA
The Government has also proposed that all pension related schemes and products are to be regulated by PFRDA. The pension regulators will regulate annuity products, mutual funds and pension products sold by insurers. A committee has been created by the Ministry of Finance to review the matter.
The systematic withdrawal plan is often prepared for getting post-retirement money flow at the regular intervals. This brings a lot of convenience to retired workers to maintain their social security and allow them to be independent.