Withdrawing money from your NPS Account
You can withdraw from your NPS in the following circumstances/conditions:
- Normal Withdrawal: on completion of 60 years of age (if you joined NPS before 60 years of age) or after completion of 3 years (if you joined NPS after 60 years of age), you can withdraw maximum 60% of the corpus as lump sum and minimum 40% of the corpus must be utilized for purchasing an annuity plan for receiving the pension. If the accumulated corpus is less than ₹5 lakhs, the entire corpus will be paid to you as lump sum.
- Partial Withdrawal: after completion of 3 years, you can withdraw 25% of your own contributions for specific reasons like illness, disability, education, marriage of children, purchasing property, and starting a new venture. You can partially withdraw upto a maximum of 3 times during your entire tenure in NPS.
- Premature Withdrawal: after completion of 5 years or before completion of 3 years (if you joined NPS after 60 years of age), you can withdraw maximum 20% of the corpus as lump sum and minimum 80% of the corpus has to be utilized for purchasing an annuity plan for receiving your pension. If the accumulated corpus is less than ₹2.5 lakh, the entire corpus will be paid to you as lump sum.
You also have the following withdrawal options:
- Continue in NPS till the age of 75 years or exit any time after such continuance before 75 years.
- While exiting from NPS, you can:
- defer receiving the lump sum (60% corpus) till the age of 75 years or withdraw the same in instalments till 75 years.
- defer Annuity purchase (40% corpus) till the age of 75 years.
In the case of an unfortunate event of death of the subscriber, the nominee/legal heir can withdraw the entire accumulated corpus. The nominee/family members of the deceased can also purchase annuity, if they so desire.
Exit options in NPS at 60 years of age
If an NPS All Citizen subscriber does not exit from NPS at 60 years of age, the account will automatically be continued up to 75 years of age. They can exercise the option of normal exit from NPS at any point of time after 60 years of age. At the age of 75 years, the account must be closed mandatorily.
Specified reasons or conditions for partial withdrawals
Partial withdrawals from your NPS account are allowed for dealing with contingency situations and following are the reasons/conditions for which partial withdrawal is allowed:
- Higher education of their children
- Marriage of their children
- Purchase or construction of residential house or flat
- Treatment of specified illnesses
- Disability of more than 75%
- Skill development/re-skilling or any other self-development activities
- Establishment of own venture or start-up
Requesting withdrawals from NPS Account
You can request for withdrawals from NPS by logging in to your Pension Account or by submitting a physical form to the service provider (PoP) directly along with the specified documents. For more details, please refer: https://www.pfrda.org.in/index1.cshtml?Isid=220
Deciding the Annuity Service Provider (ASP) and plan for receiving pension
Presently the following ASPs are empaneled with PFRDA for providing pension:
- Tata AlA Life Insurance Co. Ltd.
- SBI Life Insurance Co. Ltd.
- Life Insurance Corporation of India
- Star Union Dai-ichi Life Insurance Co. Ltd.
- ICICI Prudential Life Insurance Co. Ltd.
- HDFC Life Insurance Co. Ltd.
- IndiaFirst Life Insurance Co. Ltd.
- Edelweiss Tokio Life Insurance Co. Ltd.
- Bajaj Allianz Life Insurance Co. Ltd.
- Canara HSBC Life Insurance Co. Ltd.
- Kotak Mahindra Life Insurance Co. Ltd.
- Max Life Insurance Co. Ltd.
- PNB Metlife India Insurance Co. Ltd.
- Aditya Birla SunLife Insurance Co. Ltd.
- Shriram Life Insurance Co. Limited.
For an updated list you may visit the PFRDA website https://www.pfrda.org.in/index1.cshtml?lsid=1840
The broad variants of annuity plans offered by the ASPs are as under:
- Annuity for Life
- Annuity for Life with Return of Purchase (RoP) price on death
- Annuity payable for Life with 100% annuity payable to spouse on death of annuitant
- Annuity payable for Life with 100% annuity payable to spouse on death of annuitant with RoP of annuity
- NPS – Family Income
Receipt of pension
You will receive pension from the Annuity Service Provider (ASP) according to the Annuity Plan chosen and purchased from the ASP (Insurance Company) and the terms and conditions therein.
Rules for withdrawal from Tier-II account
Withdrawal from NPS Tier-ll account is permitted at any point of time, without any restrictions. You may also transfer the funds from your Tier-ll account to Tier-I account (One-way Switch). In case of closure of NPS Tier-I (pension account), balance outstanding in NPS Tier-ll account will get withdrawn simultaneously and thereafter transferred to your Bank account.
