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NPS exit rules eased, subscribers can withdraw up to 80%

Lower annuity requirement lets subscribers use more savings freely

The Pension Fund Regulatory and Development Authority (PFRDA) has updated the National Pension System (NPS) rules for non-government subscribers.

Retirees can now withdraw up to 80% of their corpus as a lump sum at retirement, while only 20% must be used to buy an annuity. Those with savings of Rs 8 lakh or less can withdraw 100% without annuity, and mid-range savers can take partial lump sums.

A new Systematic Unit Redemption (SUR) option allows gradual withdrawals, and subscribers can defer annuity purchase up to age 85. The changes give retirees more flexibility and easier access to funds.

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