After retirement, people can benefit from social security through the initiation of the National Pension System (NPS). By investing in this scheme, one can create a robust retirement fund and also avail the pension benefits it offers. In case of the account holder’s demise, the nominated individual receives the accumulated funds.
It is essential to register the nominee’s name in the NPS account.
According to the regulations of the Pension Fund Regulatory and Development Authority (PEDRA), an NPS account holder can add at least three nominees to their account at once. Additionally, the account holder can distribute the entire 100% of the fund among the nominees as per their requirements. This ensures that the nominee receives the funds in the event of the account holder’s demise. When adding nominees, it’s crucial to ensure that all names are accurately recorded to avoid difficulties when making a claim later.
The following individuals can be nominated in NPS accounts:
As per PEDRA’s regulations, a male NPS account holder can nominate his wife, children, partner, parents, or the widow of his deceased son. Similarly, a female account holder can nominate her husband, children, parents, in-laws, or the widow of her deceased son as nominees. Notably, an NPS account holder can update the nominee’s name at any time, and there is no limit set on the number of updates. Once a new nominee’s name is updated, the old one will automatically be canceled.
How to update the nominee in your NPS account:
- To update the nominee in your NPS account, visit the official website at https://cra-nsdl.com/CRA/.
- Click on the ‘Demographic changes’ option.
- Choose the ‘Add/Update Nomination’ option and confirm.
- Select the Tier of your NPS account and complete the nomination process.
- You will need to update the nominee’s name, relationship, date of birth, and other necessary information.
- Specify the percentage of the fund that each nominee will receive.
- You will receive an OTP on your registered mobile number, which needs to be entered.
- After that, you must complete the digital signature and enter the OTP received on your Aadhar-linked mobile number once again.
- Once the OTP verification is complete, your NPS nomination will be updated.”