Скачать или смотреть NPS Rule Change: Did I Make a Mistake?

There is a big NPS rule change.

The five-year lock-in is removed
for many NPS subscribers.

Exit rules are now easier.

But can exiting early be risky?
We will see at the end.
But before, let us understand the new rule.


By mid-December of 2025,
PFRDA changed NPS exit rules
for non-government subscribers.

Earlier, at exit:

You could take only 60% as lump sum.
The remaining 40%
was compulsory for annuity.

An annuity is a monthly pension
paid by an insurer to you
from your NPS corpus.

Under the new NPS rule change:

If your NPS corpus
is more than ₹12 lakh:

• You can withdraw up to 80% as lump sum
• Only 20% is compulsory for annuity

This is a big change.

From 60:40
to 80:20.


But, What if the total NPS amount
is ₹8 lakh or less?

Then the rule is simple.

You can withdraw 100%.
No annuity is compulsory.

This is part of the NPS new rules.


What if the corpus is
between ₹8 and ₹12 lakh?

Then:

• Up to ₹6 lakh can be withdrawn immediately
• The remaining amount must go into annuity,
as per the rules of your chosen plan

Clear rules.
No confusion.

Why this NPS rule change?

Because many retirees want:

• More cash at retirement
• More flexibility
• More choice in using the lump sum

This supports
modern retirement planning in India.

But, is there a risk?

Yes. There is a risk.

Earlier, strict rules
stopped people from exiting early.

Now, exit is easier.

If someone withdraws without planning,
future pension income may reduce.

Freedom is good.
But discipline is needed.

If you are not sure
you can manage retirement money well,
exiting early may not be a good idea.


The rules are easier now.

But decisions are heavier.

Before exiting NPS,
ask one simple question:

Will this help my retirement…
or hurt it?

Think carefully.
#nps #pension #retirementplanning

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