{"id":204320,"date":"2025-11-28T06:25:15","date_gmt":"2025-11-28T06:25:15","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/204320\/"},"modified":"2025-11-28T06:25:15","modified_gmt":"2025-11-28T06:25:15","slug":"two-large-banks-file-applications-to-enter-pension-biz","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/204320\/","title":{"rendered":"Two large banks file applications to enter pension biz"},"content":{"rendered":"

Mumbai: The Pension Fund Regulatory and Development Authority<\/a> (PFRDA) has received applications from two large banks to enter the pension fund management<\/a> business, said S Ramann chairman PFRDA. <\/p>\n

\u201cWe have a few very large banks which are not present today and they are all making enquiries,\u201d said Ramann. \u201cTwo of them have even met me giving their applications to start a pension fund.\u201d <\/p>\n

PFRDA, which has 10 pension funds registered, is preparing to launch a new inflation-linked structured payout<\/a> product for National Pension System (NPS<\/a>) subscribers and is looking to introduce it within the current financial year.
The upcoming product is designed to offer retirees an alternative to traditional annuities by providing inflation-adjusted withdrawals from their NPS corpus. Ramann said the scheme is intended to give subscribers a choice alongside annuity, ensuring that the post-retirement income remains stable even as prices rise. <\/p>\n

The structure builds on the existing Systematic Lump Sum Withdrawal (SLW) option, but with a wider scope. Under the new exit rules expected shortly, mandatory annuitisation<\/a> will fall from 40% of the corpus to 20%, while the remaining 40% can be channelled into a structured payout plan<\/a> that allows controlled withdrawals of around 3\u20135% annually aligned with global norms that help stretch retirement<\/a> savings for 20\u201325 years. <\/p>\n

\"ETLive Events
During this period, the unwithdrawn balance will continue to be invested, generating returns that can exceed inflation. Ramann said that composite NPS schemes currently yield around 9.2% annually. \u201cIf 85% -90% of your funds are growing at that pace, which is well over inflation, where if annuity is giving you 7.2%, 7.5%, this can possibly give you 9.2%, 9.5%, depends on how the pension funds structure it.\u201d Said Ramann adding that pension funds can choose the asset mix starting with some equity<\/a> exposure and reducing it over time to balance growth and liquidity. The regulator is also in talks with the government to ensure the same tax treatment for structured payouts as annuities, which are not taxed as income at account closure.<\/p>\n","protected":false},"excerpt":{"rendered":"Mumbai: The Pension Fund Regulatory and Development Authority (PFRDA) has received applications from two large banks to enter…\n","protected":false},"author":2,"featured_media":204321,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177],"tags":[79,18,45296,2004,19,112472,17,112473,6688,112471,20144,234,235,3887,5229,112474],"class_list":{"0":"post-204320","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-eire","10":"tag-equity","11":"tag-fund","12":"tag-ie","13":"tag-inflation-linked-structured-payout","14":"tag-ireland","15":"tag-mandatory-annuitisation","16":"tag-nps","17":"tag-pension-fund-management","18":"tag-pension-fund-regulatory-and-development-authority","19":"tag-personal-finance","20":"tag-personalfinance","21":"tag-retirement","22":"tag-retirement-income","23":"tag-structured-payout-plan"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115625900576241166","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/204320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=204320"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/204320\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/204321"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=204320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=204320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=204320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}