National Pension System Services Withdrawal

  • Normal Retirement / Normal Superannuation at 60 years:

On attaining 60 years of age you may choose to exit from NPS. You may withdraw upto 60% of your total fund value. The remaining 40% is the minimum requirement to start your pension. The withdrawn value will be credited to your bank account and the remaining amount will be transferred to your chosen Annuity Service Provider. If the corpus is less than Rs 5 Lacs then, full withdrawal is permitted tax free.

  • Early Retirement / Premature Exit before 60 years:

NPS allows you to exit early in case you choose to retire before 60 years of age. This benefit is available only after completion of minimum 5 years of investment. In the case of an early exit from NPS, you may withdraw maximum 20% of your total fund value. At least 80% of your fund value has to be annuitized. If the corpus is less than Rs.2.5 Lacs then full withdrawal is permitted tax free.

  • Incase of death of subscriber 100% corpus is returned to the nominee.

Partial Withdrawal – NPS allows you to partially withdraw funds from your account for specific requirements like education, marriage, building/buying residential property, critical illness, or starting your business. You are eligible to withdraw maximum upto 25% of your contribution. During your NPS tenure, you may partially withdraw maximum 3 times. The withdrawal amount for every subsequent withdrawal will be calculated as 25% of the incremental individual contribution.

Deferment Option – You have the option to stay invested upto the age of 75.

National Pension System (NPS), offers you a regular pension post your retirement. You have the flexibility to choose the payment frequency and the pension option. The time of retirement, you may select an appropriate Annuity Service Provider (ASP).. Following are the ASPs you may choose from.

  • HDFC Life Insurance Company Limited

  • Life Insurance Corporation of India Limited

  • ICICI Prudential Life Insurance Company Limited

  • SBI Life Insurance Company Limited

  • Star Union Dai-Ichi Life Insurance Co. Ltd

  • Bajaj Allianz Life Insurance Company Limited

  • Edelweiss Tokio Life Insurance Company Limited

  • India First Life Insurance Company Limited

  • Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited

  • Kotak Mahindra Life Insurance Company Limited

  • Max Life Insurance Co. ltd.

  • Tata AIA Life Insurance Company Limited

  • PNB MetLife India Insurance Co. Ltd