Archive · 17 Dec 2025
PFRDA Expands NPS Investment and Exit Options
The Pension Fund Regulatory and Development Authority (PFRDA) has made big changes to the National Pension System (NPS).
Now, pension funds can invest in gold and silver exchange-traded funds (ETFs), Real Estate Investment Trusts (REITs), and more types of stocks.
This means people saving for retirement can have a more varied investment portfolio.
Experts say this is a big deal because it shows the government is starting to see gold and silver as important assets for long-term savings.
Additionally, non-government employees who have opted for the NPS can now withdraw up to 80% of their retirement corpus as a lump sum at the time of exit.
The remaining 20% must be used to purchase an annuity, which provides periodic pension income.
This change makes it easier for people to access their retirement savings while still ensuring some income for the future.
The rules also depend on how much money is in the account and the type of exit, such as normal exit, voluntary exit, or exit due to death.
PFRDA has expanded NPS investment options to include gold and silver ETFs, REITs, and broader equities.
Equity exposure has been expanded from the top 200 to the top 250 stocks by market capitalization.
Gold and silver allocation is capped at up to 1% of total assets for government schemes and up to 5% of equity allocation for private pension funds.
Pension fund assets under management stood at around Rs 16 lakh crore as of November 2025.
Non-government NPS subscribers can now withdraw up to 80% of their retirement corpus as a lump sum, with the remaining 20% used to purchase an annuity.
- Who
- Pension Fund Regulatory and Development Authority (PFRDA)
- What
- Expanded investment options for National Pension System (NPS) to include gold and silver ETFs, REITs, equity-oriented AIFs, and broader equities; eased exit rules for non-government subscribers
- When
- Effective December 2025
- Where
- India
- Why
- To diversify pension funds and allow exposure to a broader range of assets, including precious metals; to provide more flexibility in withdrawal options for non-government subscribers
- Organization
- Pension Fund Regulatory and Development Authority (PFRDA)
- Scheme
- National Pension System (NPS)
- New Investment Options
- Gold and silver ETFs, REITs, equity-oriented AIFs, broader equities
- Equity Exposure
- Expanded from top 200 to top 250 stocks by market capitalization
- Gold and Silver Allocation
- Up to 1% of total assets for government schemes, up to 5% of equity allocation for private pension funds
- Pension Fund Assets
- Rs 16 lakh crore as of November 2025
- Expert
- Alok Jain, Founder of Weekend Investing
- Lump Sum Withdrawal
- Up to 80% of retirement corpus for non-government subscribers
- Mandatory Annuity
- 20% of corpus for non-government subscribers
- Exit Rules
- Depend on accumulated pension wealth (APW) and type of exit
Sources
How PFRDA's nod to gold, silver ETFs will alter retirement investment playbook expert explains
NPS withdrawal rules changed for govt employees: What has changed and how it impacts retirement corpus
PFRDA eases NPS exit rules for non government subscribers, lowers mandatory annuity to 20%
NPS New Rules: 5-Year Lock-In Removed, 80% Lump Sum Withdrawal Allowed
NPS rules revised: With a higher withdrawal limit in place, how will it affect corporate subscribers?
