Pension Fund

At Retirement

NPS Tier I account withdrawals can be done by:

Corporate subscribers: On the date of retirement
UOS subscribers: At 60 years of age.

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At least 40% of the fund value (corpus) in NPS Tier I account on the date of retirement must be mandatorily utilised to purchase an annuity. The amount utilised for purchase of annuity is fully exempted from tax.
Subscribers can opt to defer the purchase of an annuity for a period of 3 years.
Subscribers can withdraw up to 60% of the corpus as lumpsum. This lumpsum withdrawal amount is exempted from tax.
Subscribers can defer the withdrawal of the lumpsum amount and continue to stay invested in NPS up to 75 years.
The subscriber is also permitted to withdraw lumpsum in 10 installments. However, annuity must be purchased before opting for phased withdrawal.
If the corpus in the subscribers account is equal to or less than ₹ 5 Lakhs, subscriber can withdraw the full amount.
- Higher education
- Marriage of children
- Purchase/construction of residential houses, etc.
- Medical expense
- Expense toward establishment of own business venture, etc.

Premature exit

Subscribers can opt to exit from their NPS account before retirement, subject to the following conditions:

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Upon the death of the subscriber

In the unfortunate event of the death of the NPS subscriber, the entire outstanding corpus in the subscriber's account will be paid to the nominee. This corpus received by the nominee is fully exempted from tax.

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Partial Withdrawal

The subscribers can withdraw a partial amount from NPS account subject to following rules:

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NPS Withdrawal & Exit

At Retirement

Premature exit

Upon the death of the subscriber

Partial Withdrawal

Withdrawal from NPS Tier II Account

NPS subscribers can withdraw anytime from their Tier II accounts.