The Pension Fund Regulatory and Development Authority (PFRDA) has launched a new Retirement Income Scheme (RIS) and drawdown options under the National Pension System (NPS), offering greater flexibility for managing pension savings post-retirement. Additionally, PFRDA has eased annuity surrender rules, allowing exits in cases of critical illness or for older contracts with explicit surrender clauses.
RIS Steady Life Cycle begins with an equity allocation of 35 per cent at age 60, which gradually reduces. Between ages 75 and 85, it remains constant at 10 per cent.
Since this is a long-term investment, investors must do their homework and choose a fund manager carefully.
NPS Vatsalya offers a disciplined investment avenue that parents can use to create intergenerational wealth by contributing even small sums.
'Stay invested but progressively reduce risk. Beyond a point, the objective should shift from maximising returns to avoiding unpleasant surprises.'
The EPF should remain a retirement nest egg, not be turned into an emergency fund.
rediffGURU T S Khurana answers readers' personal income tax queries
Behind the aesthetics of an entrepreneurial lifestyle lies a silent financial crisis that nobody is talking about: Freelancers are sprinting toward a retirement brick wall.
If you have ever said 'I'll sort retirement later,' now is when 'later' begins.
Life cycle funds may suit people who are starting their investing journey. They may suit those who do not want to monitor their investments frequently. Busy professionals, beginners and delegators, who lack the time, information or interest to manage asset allocation actively, may find these funds useful.
Of course, NOT! Here's why. And here's how you can increase your Rs 1 crore retirement corpus.
'We may be able to wind back some of the schedule reductions we'd taken in recent months.'
The Indian government is reportedly considering increasing the foreign direct investment (FDI) limit in the pension sector to 100 per cent, bringing it in line with the insurance sector. A Bill to amend the PFRDA Act, 2013, is expected in an upcoming Parliament session.
The highest number of requests was reported for the purchase or construction of residential houses, which stood at 172,625, of which 155,236 were settled, involving an amount of Rs 1,327.91 crore partial withdrawals under the National Pension System (NPS) in FY 2024-25, according to data from the Pension Fund Regulatory and Development Authority (PFRDA) annual report released this month.
'The informal sector can grow at a 100 per cent rate -- we have to plan big.'
Those who have long retirement horizons of 15 to 20 years and seek higher long-term returns may opt for MSF. Investors nearing retirement (under 10 years) or those with low risk tolerance should stay away.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
Recent changes to tax exemptions and allowances, including increased education, hostel, and HRA limits, have made the old tax regime more competitive against the new regime, prompting salaried employees to re-evaluate their choice for the current financial year.
With Income Tax Act 2025 in force, your tax choice can quietly cost you big money if you're not paying attention. Ramalingam Kalirajan explains how
In the rush to complete tax-saving investments at the end of the financial year, many taxpayers choose instruments that do not match their long-term financial goals.
From the financial year 2025-2026, the government has introduced a new column in the tax return form for presumptive taxpayers, requiring them to disclose their year-end investments. This requirement was not present last year.
rediffGURU Jinal Mehta answers readers' financial planning and health insurance queries
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
The most common mistake is investing without assessing suitability and long-term implications.
Isn't the goal of retirement planning to create a balanced portfolio that aligns with your financial goals, rather than chasing returns blindly, asks Ramalingam Kalirajan
Sebi is working with other regulators to expand the CAS framework.
Invest in MFs for liquidity and choice of funds. Invest in NPS for the tax benefits, tax-free rebalancing, and for earmarked savings for retirement.
From how to open an NPS Vatsalya account to knowing how this scheme compares to investing in mutual fund or in provident fund, Ramalingam Kalirajan offers a 360-degree view and the pros and cons of investing in a scheme that has the potential to secure your child's financial well-being.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
'Younger employees, who tend to have a higher risk appetite, will find NPS advantageous due to the potential gains from equity markets over time.'
Ramalingam Kalirajan explains the pros and cons of both investment types.
A record amount of pension money may be finding its way into the stock market, if buying figures in the National Stock Exchange (NSE) data are any indication. Category inflows touched Rs 37,409 crore for the three months ending September 2025, shows an analysis of NSE data.
Ramalingam Kalirajan dives into the specifics of NPS withdrawal rules to help you understand the conditions under which and when partial withdrawals are allowed.
'Young investors with limited funds should ensure that investing in NPS does not crowd out their other, more liquid, investments.'
Ask rediffGURU and PF and MF expert Janak Patel your mutual fund and personal finance-related questions.
Switching to the UPS could be a game-changer for your retirement planning, especially if you value guaranteed benefits and higher government contributions, observes Ramalingam Kalirajan.
The change in the government's engagement with the economy's need for reforms is more nuanced than how analysts have so far perceived it, points out A K Bhattacharya.
The government bond yield curve is likely to flatten in the financial year 2027 (FY27) as the Reserve Bank of India (RBI) is expected to ease supply pressure in the ultra-long segment. In FY26 so far, reduced investments by insurance companies and pension funds pushed up yields on ultra-long tenor securities, steepening the curve.
Do you have financial planning queries? Ask rediffGURU Anil Rego.
