NPS Withdrawal Rules Eased for Private Employees

The Pension Fund Regulatory and Development Authority (PFRDA) has made some changes to the National Pension System (NPS) for private sector employees.

Now, if you have more than Rs12 lakh in your NPS account when you retire, you can take out up to 80% of it as cash.

The rest must be used to buy an annuity, which gives you a regular income.

If you have Rs8 lakh or less, you can take out the entire amount.

You can also keep your money invested in NPS until you are 85 years old.

If something happens to you before you withdraw your money, your nominee or legal heir will get the entire amount.

These changes give private sector employees more flexibility and control over their retirement savings.

However, government employees still follow the old rules, where they can take out 60% and must use 40% to buy an annuity.