NPS Vatsalya Yojana launched, minors also covered...?

In order to build up a sizable corpus and ensure their financial security in the future, minors can now open pension accounts across the nation. The NPS Vatsalya Scheme for minors has been introduced by Finance minister Nirmala Sitharaman. people of this age who had not previously been eligible for pension payments can now do so under this arrangement. Pension benefits can also be connected to minors via this program.

Finance minister Sitharaman also gave Permanent Retirement Account Numbers to nine youngsters in conjunction with the NPS Vatsalya Yojana inauguration. During his speech, the Finance minister made a plea to parents, encouraging them to fund their child's NPS Vatsalya account each time they attended their child's birthday celebration. This will assist the child build up a sizable corpus in the future. According to the Finance minister, senior persons today would have benefited from pensions if there had been an earlier version of the NPS Vatsalya plan. The Finance minister stated that parents' propensity to save and invest will rise thanks to NPS Vatsalya.

Once an adult, a regular NPS account will be created.

The Pension Fund Regulatory and Development Authority will oversee the NPS Vatsalya scheme (PFRDA). This time, PFRDA Chairman deepak Mohanty stated in his speech that it was previously thought that pensions were only available to public servants. However, with the introduction of NPS, both the general public and employees of the commercial sector could access it. Through the NPS Vatsalya system, children can now be linked to pensions as well. According to him, NPS Vatsalya will change into a conventional NPS account once the minor reaches adulthood and can be transferred to the employer's NPS account when they start working there.

According to deepak Mohanty, pension assets are long-term investments that, when fully capitalized, yield significant returns on investment and economic growth. Three-quarters of the population is under the age of eighteen. Early retirement planning can have a lot of advantages. In such circumstances, it was considered that a pension plan was necessary in order to foster an investment and savings culture.