Up to ₹8 lakh
Withdraw 100% as a lump sum — no annuity required.
About NPS
NPS Withdrawal & Exit
How and when you can access your NPS money — at retirement, before it, in part, through an annuity, or in the event of a claim.
Normal exit
Exit at retirement (age 60)
How much you can take as a lump sum depends on the size of your corpus.
₹8–12 lakh
Take up to ₹6 lakh as lump sum; the balance buys an annuity.
Above ₹12 lakh
Up to 80% lump sum; at least 20% goes to an annuity.
Example — a ₹50 lakh corpus: up to ₹40 lakh (80%) as lump sum, and at least ₹10 lakh (20%) to an annuity. The 2025 amendments reduced the mandatory annuity share for non-government subscribers.
Read more — the corpus bands and the 2025 changes
At normal exit (age 60), how much you can take as a lump sum depends on the size of your corpus — smaller corpuses can be taken in full, larger ones direct a share to a lifelong pension.
How the bands work
- Up to ₹8 lakh — 100% lump sum, no annuity
- ₹8–12 lakh — up to ₹6 lakh lump sum, balance to annuity
- Above ₹12 lakh — up to 80% lump sum, at least 20% to annuity
- 2025 amendments reduced the annuity share for non-govt subscribers
Example — a ₹50 lakh corpus: up to ₹40 lakh as lump sum and at least ₹10 lakh to an annuity.
Exiting before 60
Premature exit
You can exit early, but more of the corpus is directed to your pension.
Mostly to annuity
Up to 20% as lump sum; at least 80% buys an annuity.
Small corpus
A corpus below the prescribed limit can be taken entirely as a lump sum.
Then a pension
The annuity provides a regular income after you exit.
Read more — the rules for exiting before 60
You can exit before 60, but the rules deliberately steer more of the corpus into your pension so the retirement purpose is preserved.
What applies
- Up to 20% as lump sum
- At least 80% buys an annuity
- A corpus below the prescribed limit can be taken fully as lump sum
- The annuity then pays a regular income
Without exiting
Partial withdrawal
Access part of your own contributions for specific life needs — while the account stays open.
Up to 25%Of your own contributions
After 3 yearsOf joining NPS
4-year gapBetween withdrawals
Set reasonsOnly for permitted needs
Read more — the updated partial-withdrawal rules
You can access part of your own contributions without closing the account, for specific life needs. The rules were recently liberalised.
Current limits
- Up to 25% of your own contributions
- Allowed after 3 years of joining
- Up to four withdrawals before age 60
- At least a 4-year gap between withdrawals
- After 60: unlimited, with a 3-year gap
- You can also take a loan up to 25% against the account
Permitted reasons include children’s higher education and marriage, buying or building a house, and medical treatment — broadened in 2025 from specified critical illnesses to hospitalisation generally.
Turning corpus into pension
Annuity purchase rules
At exit, the annuity portion is used to buy a pension from an Annuity Service Provider. Tap an option for detail.
Annuity income is taxed at your applicable income-tax slab. The exact options and rates are set by the Annuity Service Provider you choose.
Read more — the annuity options in detail
The annuity portion is used to buy a pension from an Annuity Service Provider. The option you pick decides who receives income, and whether your capital is returned.
Common options
- Life annuity — pension for your lifetime
- With return of purchase price — corpus returns to nominee
- Joint-life — continues to your spouse
- Joint-life with return of purchase price
- Family income — covers dependants in turn
A return-of-purchase-price option pays a somewhat lower pension in exchange for returning your capital. Annuity income is taxed at your slab.
In case of a claim
Death & nominee claim
If the subscriber passes away, the accumulated corpus is paid to the registered nominee or legal heir. Depending on the case and rules, the nominee may receive the amount as a lump sum, or continue the account or purchase an annuity — which is why keeping your nominee details up to date matters.
Withdrawal, exit and annuity rules follow the prevailing PFRDA regulations and Income-tax provisions, and should be verified before acting.
Read more — the nominee and claim process
If the subscriber passes away, the accumulated corpus is paid to the registered nominee or legal heir — which is exactly why keeping nominee details current matters.
How a claim is settled
- Corpus goes to the nominee or legal heir
- Often payable as a lump sum
- In some cases the account can be continued or an annuity purchased
- Governed by prevailing PFRDA rules
Good to know
Common questions
Tap a question to read more.
How liquid is NPS compared with other products?
Less liquid by design — it is built for retirement. Before 60 you can make only limited partial withdrawals for set reasons; full access comes at exit. That trade-off is exactly what keeps the corpus invested and compounding.
What is Systematic Lump Sum Withdrawal (SLW)?
Instead of taking your lump sum in one go at exit, SLW lets you draw it in regular instalments over time — so part of the corpus stays invested and keeps working while you receive periodic payouts.
Can I defer withdrawal or keep contributing after 60?
Yes. You can generally defer the lump sum and/or the annuity purchase and continue contributing beyond superannuation, within the applicable limits — useful if you don’t need the money immediately.
How is the money taxed at exit?
Under current rules the lump-sum portion is largely tax-favoured, while the monthly annuity pension is taxed at your income-tax slab in the year you receive it. Always confirm against the prevailing provisions.
What happens if I pass away?
The accumulated corpus goes to your registered nominee or legal heir, who may take it as a lump sum or, depending on the case, continue the account or purchase an annuity — which is why keeping nominee details current matters.