Pension fund regulator PFRDA plans to come out with a systematic withdrawal plan which will provide flexibility to account holders to withdraw a lump sum fund as per their choice on completion of 60 years.

“It is at a very advanced stage. Hopefully, by the end of the next quarter we should be able to come out with a scheme like that,” PFRDA chairman Deepak Mohanty said.

National Pension Scheme (NPS) subscribers, at present, after turning 60 years withdraw up to 60 per cent of the retirement corpus as a lump sum while the remaining 40 per cent of the corpus mandatorily goes into buying an annuity.

However, a systematic withdrawal plan will allow NPS subscribers to opt for periodic withdrawal — either monthly, quarterly, half-yearly, or annually — till the age of 75 years.

“Many people requested that why we cannot stay with the fund. When my fund is giving a very good return why should I take an annuity. I like to stay on and draw that money on the frequencies on a monthly basis or quarterly basis. But that option we cannot provide as of now. So we are asking for a product like that,” he said.

The PFRDA has increased the entry age up to 70 and the exit age to 75 keeping in view longevity.

One can defer annuity receipt based on subscribers’ financial condition so that one gets a much higher annuity, he said, adding, those who can afford that keep it for the contingency.

“So what we are trying to do is come out with a systematic withdrawal plan which is permitted within our statute that somebody’s going to take a deferred annuity and can draw the balance 60 per cent in a systematic withdrawal plan,” he said.

Asked about the proposed amendment to PFRDA Act, he said, “We have made some suggestions to the government. And one key thing that we have suggested in the amendment is an alternate pension product.”