NPS withdrawal guidelines, entry age eased. Details right here

The Pension Fund Regulatory and Development Authority (PFRDA) has allowed subscribers to withdraw the whole collected pension wealth with out buying annuity if the pension corpus is lower than ₹5 lakh. Currently, NPS subscribers having a corpus of over ₹2 lakh on the time of retirement or attaining the age of 60 years want to purchase an annuity, provided by insurance coverage firms, on a compulsory foundation.

They can take out the remaining 60 per cent as a lump sum. In a gazette notification, the pension regulator additionally acknowledged that the untimely withdrawal restrict on a lumpsum foundation for NPS has been elevated to ₹2.5 lakh from ₹1 lakh. “…where the accumulated pension wealth in the Permanent Retirement Account of the subscriber is equal to or less than a sum of ₹5 lakh, or a limit as specified by the Authority, the subscriber shall have the option to withdraw the entire accumulated pension wealth without purchasing annuity and upon such exercise of this option, the right of such subscriber to receive any pension or other amount under the National Pension System or from the government or employer, shall extinguish,” it mentioned.

The regulator additionally elevated the utmost age of entry into the National Pension System (NPS) from 65 to 70. The exit age restrict has additionally been prolonged to 75 years.

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