Archive · 25 Dec 2025
PFRDA Relaxes NPS Withdrawal Rules
The Pension Fund Regulatory and Development Authority (PFRDA) has made several changes to the National Pension System (NPS) to make it more flexible.
Subscribers can now fully close their NPS accounts after 15 years, withdraw 80% of their corpus as a lump sum, and make four partial withdrawals without a lock-in period.
Retirees can also stay invested in NPS until age 85.
However, government employees still have to use 40% of their final proceeds to buy an annuity, which is not required for private sector employees.
These changes aim to make the NPS more attractive and user-friendly.
NPS subscribers can now fully close their accounts after 15 years.
Subscribers can withdraw 80% of their corpus as a lump sum, with 20% subject to compulsory annuitisation.
Partial withdrawals can be made at any time, with a cap of four withdrawals.
Retirees can stay invested in NPS until age 85, with the option to exit anytime in-between.
Government employees still have to use 40% of their final proceeds to buy an annuity, unlike private sector employees.
- Who
- NPS subscribers, both private and government employees
- What
- Relaxation of NPS withdrawal rules
- When
- Effective immediately
- Where
- India
- Why
- To make the scheme more attractive and flexible for subscribers
- Authority
- Pension Fund Regulatory and Development Authority (PFRDA)
- Full Closure
- After 15 years
- Lumpsum Withdrawal
- 80% of corpus
- Annuity Requirement
- 20% of corpus
- Partial Withdrawals
- Four withdrawals, no lock-in
- Maximum Investment Age
- 85 years
- Government Employees
- Still require 40% annuitisation
