Now withdraw entire NPS corpus of up to ₹8 lakh:PFRDA allows subscribers to remain invested in the pension scheme till the age of 85

Pension Fund Regulatory and Development Authority (PFRDA) has made major changes to the exit and withdrawal rules of National Pension System (NPS). According to the updated rules, if the total deposit in NPS is ₹8 lakh or less, you can withdraw your entire money. Earlier this limit was ₹5 lakh. For non-government employees, only 20% of the deposit needs to be invested in annuity purchase, earlier it was 40%. This means they can now withdraw up to 80% as lump sum. Exit age now increased to 85 years Earlier, the age for complete exit from NPS was 75 years, now it has been increased to 85 years. Also, employees can keep their account active even after retirement, they can increase or decrease lump sum or annuity purchase. This will continue to provide market return benefits for a longer period. Non-government users can exit anytime between 60 to 85 years. Withdrawal rules for deposits above ₹12 lakh If the deposit is more than ₹12 lakh, you can take 20% in annuity and the rest in lumpsum or staggered withdrawals. If the deposit is between ₹8 to 12 lakh, you can withdraw up to ₹6 lakh as lumpsum and the rest through systematic withdrawal option. The new rules will make it easier for small investors to meet cash needs at retirement and employees will have more options at retirement. The government issued a notification about this on December 16. What Changed for Government Employees? For government employees, the annuity rule remains the same as before, meaning at least 40% of large corpus (deposits) must be invested in annuity. However, the limit for complete lumpsum withdrawal on small deposits (up to ₹8 lakh) has increased. Employees can withdraw up to ₹6 lakh as lumpsum and the rest through systematic payout or annuity for corpus between ₹8-12 lakh. New Systematic Withdrawal Option The new rules have added the option of Systematic Unit Redemption (SUR). Employees can withdraw money gradually instead of all at once, for at least 6 years. This will help in tax planning and managing cash flow. What were the previous rules? Previously, 40% annuity was mandatory in non-government sector. The limit on small corpus was lower and exit age was also limited. PFRDA has tried to make NPS more attractive with these changes, so that people choose it for retirement savings. What will be the impact? These changes will give subscribers freedom to use money according to their needs. Small investors will get full cash, large investors will get more lumpsum. However, lower annuity may affect long-term pension income. Experts say this will lead to more people joining NPS and make retirement planning easier. ​