PFRDA launches Retirement Income Schemes (RIS) under NPS

What: PFRDA introduced Retirement Income Schemes (post‑retirement framework) to provide flexible periodic payouts during decumulation; NPS continuation extended to age 85 (earlier closure age 75).

Existing rules: At retirement, subscribers can withdraw up to 60% tax‑free and must use at least 40% to buy an annuity; RIS offer flexible payout options and corpus appreciation.

Significance:

• Pension reform: Enhances retirement income flexibility, addresses longevity risk and improves retirement financial planning.

• Financial inclusion: Greater choices for retirees; supports market for annuity/retirement products.

UPSC relevance: Social security policy, pension regulation, financial sector reforms.

Practice Q: Discuss how RIS under NPS can address old‑age income security in India.