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NPS Retirement Income Scheme Explains Payouts and Investments
The National Pension System helps people save money for retirement.
When they retire, some of their savings must still be used to buy an annuity.
An annuity provides regular pension income.
The remaining designated money can be used through the Retirement Income Scheme.
RIS can pay money every month, quarter, or year.
Payments can continue until age 85 or for a shorter chosen period.
The amount is not fixed because it depends on the available savings and investment value.
The money stays invested, with less invested in shares as the person gets older.
PFRDA introduced Retirement Income Schemes for NPS subscribers on 15 May 2026.
RIS provides monthly, quarterly, or annual payouts from the designated portion of an NPS corpus.
The mandatory annuity requirement remains, with 20% or 40% used for annuity purchase depending on applicable exit rules.
RIS payouts can continue until age 85, or for a shorter period selected at NPS exit.
RIS keeps the payout corpus invested through a life-cycle approach that gradually reduces equity exposure with age.
- Who
- Government and non-government NPS subscribers, under rules introduced by the Pension Fund Regulatory and Development Authority.
- What
- The Retirement Income Scheme provides periodic payouts from a designated portion of an NPS corpus while preserving the existing annuity requirement.
- Where
- When
- The scheme was introduced on 15 May 2026.
- Why
- To help retirees manage regular post-retirement cash flow while their designated corpus remains invested.
Key facts
- Scheme
- Retirement Income Schemes (RIS)
- Regulator
- Pension Fund Regulatory and Development Authority (PFRDA)
- Payout frequency
- Monthly, quarterly, or annually
- Maximum payout age
- Up to age 85
- Annuity requirement
- 20% or 40% of the corpus, depending on applicable exit rules
- RIS pension amount
- Not fixed; it depends on the corpus, payout option, and corpus value
- RIS Steady allocation at age 60
- 35% equity, 10% corporate debt, and 55% government securities
Sources
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