Preparations are on to bring a special pension scheme. This pension scheme can provide minimum guaranteed returns to the people. This pension scheme can be brought soon.
This has been said by Deepak Mohanty, Chairman of Pension Fund Regulatory and Development Authority (PFRDA). This pension plan with guaranteed returns can come as an option under the National Pension Scheme (NPS). This pension plan will cater to the needs of those who are looking for guaranteed returns on their investments.
Target of 1.3 crore enrollment in Atal Pension Scheme this year
PFRDA chairman Deepak Mohanty said, “There is a lot of work going on…we have to strike a balance between risk and return…if someone gives trust, it has a value. In Atal Pension Scheme, the government gives assurance and the customer pays the price. He said that in case of fixed returns, more capital should be provided to the pension fund as it is taking more risk. He has also said that there are about 5.3 crore subscribers in the Atal Pension Yojana (APY). This year the target of enrollment in the scheme is 1.3 crore, which was 1.2 crore last year.
Asked to increase the monthly pension amount
Pension regulator PFRDA chairman Deepak Mohanty said in an interview to CNBC-TV18 that the regulator has asked the government to increase the maximum monthly pension amount under the government-guaranteed Atal Pension Yojana (APY) from Rs 5,000. However, he has acknowledged that there are several financial constraints.
He said that the target of pension regulator is to increase the enrollment under the scheme, on this front the regional rural banks are doing very well. Atal Pension Yojana has generated a return of 9% and the government has assured gap funding for the scheme.
PFRDA Chairman Mohanty has said that keeping investments in the market for 5-6 years can provide assured returns, but the lack of absolute certainty creates difficulties for some. To overcome this problem, PFRDA is preparing such a scheme, which offers assured returns. However, it will cost additional.
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