Liquidity and Maturity

Upon maturity, if your corpus exceeds 5 lakhs, you will only be allowed to withdraw 60% of the corpus (tax free u/s Section 10 (12A) as a lump sum. The rest of the 40% will be annuitized.

7 different kinds of annuity plans approved by the PFRDA

• Annuity for life
• Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter
• Annuity for life with return of purchase price on death
• Annuity for life increasing at a simple rate of 3% p.a
• Annuity for life with a provision of 50% of the annuity payable to spouse of the annuitant for life after death of the annuitant
• Annuity for life with a provision of 100% of the annuity payable to spouse of the annuitant for life after death of the annuitant
• Annuity for life with a provision of 100% of the annuity payable to spouse of the annuitant for life after death of the annuitant, with return of purchase price on the death of the last survivor

Post-maturity investments

• A subscriber may extend the investment period up to 75 years of age
• Fresh contributions are allowed during such a period of deferment
• Minimum 40% has to be used for buying annuities from an approved annuity service provider

Tax-free partial withdrawals in NPS are allowed after a 3-year lock-in period up to a maximum of 25% of the total amount invested in individual capacity.

Partial withdrawal is allowed subject to the following condition

• Children’s higher education
• Marriage of children
• Purchase /construction of house
• Critical illness (including Covid 19)
• Disability (more than 75%)
• Skill Development or re-skilling any other self-development activities
• Establishment of own venture or start up

Please note:

• Individual subscribers will only be allowed a maximum of three withdrawals during the entire tenure of subscription
• Premature withdrawals in NPS are not allowed from the employer contributions

Premature or early exits are allowed on completion of the 5th year in NPS but a lumpsum withdrawal is limited to a maximum of 20% of the total amount.

A premature exit from NPS is permitted subject to the following conditions

• Only 20% of the total corpus can be withdrawn
• The remaining 80% has to be used to purchase a life annuity from any PFRDA empanelled Life Insurance Company
• If Corpus < Rs. 2.5 Lac, complete withdrawal may be opted
• The NPS account will be closed post withdrawal 

Before Maturity
In case of the unfortunate demise of the subscriber before completion of 60 years/maturity, the nominee can withdraw 100% of the corpus.

After Maturity
Nominee / Legal heir would receive proceeds as per the selected annuity plan (pension).