Difficulty: Medium
Correct Answer: 65 years
Explanation:
Introduction / Context:
The National Pension System, commonly called NPS, is a voluntary long term retirement savings scheme in India. There are different models within NPS, including a Private Sector model open to all citizens. Regulatory changes over time have adjusted the age limits for joining. This question tests your knowledge of the maximum age at which an individual can enroll in NPS under the Private Sector model, a fact that is frequently asked in banking, finance, and general awareness exams.
Given Data / Assumptions:
Concept / Approach:
NPS originally allowed enrollment up to 60 years of age, but the Pension Fund Regulatory and Development Authority later expanded this to include older individuals. Under the Private Sector NPS models, the maximum entry age was increased from 60 years to 65 years. This change aimed to allow late starters to build some pension corpus. Although more recent discussions may involve further flexibility, exam oriented questions generally refer to the widely publicized increase to 65 years for joining NPS under the Private Sector at the time of that policy change.
Step-by-Step Solution:
Step 1: Recall that the minimum age to join NPS is generally 18 years.
Step 2: Remember that originally the maximum age was 60 years, after which people could not enroll.
Step 3: Note the regulatory decision to raise the maximum joining age for NPS Private Sector from 60 years to 65 years.
Step 4: Compare this figure with the options 55, 60, 65, and 70 years.
Step 5: Select 65 years as the correct maximum age for joining under the Private Sector model as per the commonly examined rule.
Verification / Alternative check:
You can verify this by recalling official communications that emphasized the new age band 18 to 65 years for Private Sector NPS subscribers after the change. Many financial awareness articles mention that PFRDA allowed individuals between 60 and 65 years to enroll, extending the previous limit. While there have been later updates regarding exit ages and flexibility, the standard multiple choice question for entrance exams continues to highlight 65 years as the maximum joining age in this context. This alignment with typical exam sources confirms that 65 years is the expected answer.
Why Other Options Are Wrong:
The option 55 years is incorrect because it is below the older limit of 60 years and does not reflect any widely used joining age rule. The option 60 years corresponds to the earlier limit that existed before the increase, so it is outdated in the context of the Private Sector change described in exam questions. The option 70 years is incorrect because, although discussions about staying invested longer exist, the highlighted maximum joining age in the private citizen model was 65 years, not 70 years, at the time relevant to such questions. Therefore, these alternatives do not match the commonly tested regulatory limit.
Common Pitfalls:
A common pitfall is confusing the age at which one can exit or remain invested with the age of joining. Another mistake is remembering only the original limit of 60 years and not the subsequent change. Some candidates may also pick the highest number, 70 years, assuming more recent rules always apply, without checking the exact wording of the question. To avoid such errors, pay attention to whether the question is about joining age or exit age, and recall that in exam oriented material, 65 years is usually given as the maximum age for joining NPS under the Private Sector models.
Final Answer:
Under the NPS Private Sector model, the maximum age at which an individual can join the scheme is 65 years.
Discussion & Comments