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 your corpus size. The cards show non-government subscribers (All Citizen, Corporate, NRI); the government difference is noted below.
₹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.
Government subscribers: the ≤₹8 lakh and ₹8—12 lakh bands are the same, but above ₹12 lakh the split is up to 60% lump sum and at least 40% annuity (the traditional 60:40 rule) — e.g. on a ₹50 lakh corpus, ₹30 lakh (60%) lump sum and ₹20 lakh (40%) annuity.
Read more — the corpus bands and the 2025 changes
At age 60 or on superannuation, the split depends on your corpus size and whether you are a government or non-government subscriber.
Non-government subscribers
- Up to ₹8 lakh — 100% lump sum; no annuity required.
- ₹8—12 lakh — up to ₹6 lakh lump sum; the balance buys an annuity or is drawn via Systematic Unit Redemption (SUR).
- Above ₹12 lakh — up to 80% lump sum, at least 20% annuity. On ₹50 lakh: ₹40 lakh lump sum + ₹10 lakh annuity.
Government subscribers — where it differs
- The ≤₹8 lakh and ₹8—12 lakh bands are the same.
- Above ₹12 lakh — up to 60% lump sum, at least 40% annuity (the 60:40 rule). On ₹50 lakh: ₹30 lakh lump sum + ₹20 lakh annuity.
Good to know (both)
- You can defer the lump sum and/or annuity and stay invested up to age 85.
- SUR lets you draw the corpus in phases over at least 6 years instead of one lump sum.
- The lump sum is largely tax-free; the annuity pension is taxed as income in the year received.
The 2025 amendments cut the mandatory annuity to 20% for non-government subscribers (from 60:40) and let corpuses ≤₹8 lakh exit fully. Figures follow the prevailing PFRDA rules.
Exiting before 60
Premature exit
You can exit early, but more of the corpus is directed to your pension.
Mostly to annuity
Above ₹5 lakh: up to 20% as lump sum; at least 80% buys an annuity.
Small corpus
A corpus of ₹5 lakh or less can be taken 100% as a lump sum — no annuity.
Then a pension
The annuity provides a regular income after you exit.
Read more — the rules for exiting before 60
Exiting before 60 is allowed but more restrictive — NPS is built for retirement. The corpus rules are the same for government and non-government subscribers.
How much you get
- Corpus up to ₹5 lakh — 100% lump sum; no annuity required (the threshold was raised from ₹2.5 lakh).
- Corpus above ₹5 lakh — up to 20% lump sum, at least 80% annuity. On ₹20 lakh: ₹4 lakh lump sum + ₹16 lakh annuity.
Good to know
- Raise the request online or through your point of presence, with KYC and bank details.
- SUR can be used for the lump-sum share instead of a one-time payout.
- Confirm the tax treatment of the lump sum before you exit early.
Figures follow the prevailing PFRDA rules.
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
Partial withdrawal lets you dip into your own contributions without closing the account — the rules are the same for all subscribers.
The figures
- Allowed after 3 years in NPS, from a Tier I account.
- Up to 25% of your own contributions only — not employer contributions or investment gains.
- Up to 4 times before exit (raised from 3 under the 2025 amendments).
- Gap between withdrawals: about 4 years before age 60, and 3 years if you continue after 60.
Permitted reasons
- Higher education or marriage of children
- Purchase or construction of a first house
- Treatment of specified serious illnesses or disability
- Skill development or self-employment, or settling a permitted financial obligation on the account
Figures follow the prevailing PFRDA rules.
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 cards name the main options — the real decision is the trade-off behind them.
Choosing an option
- Returning the purchase price to your nominee means a lower monthly pension; forgoing it raises the pension
- Joint-life options protect a spouse’s income, usually at a slightly lower rate
- You buy the annuity from an Annuity Service Provider of your choice at exit
Good to know
- The annuity rate is fixed at purchase, so it pays to compare providers first
- The pension is taxed at your slab in the year you receive it
- The purchase amount itself is not taxed when the annuity is bought
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
Beyond who receives the money, it helps to know how a claim is actually settled.
Filing a claim
- The nominee submits the withdrawal form with the death certificate, KYC and bank details through the point of presence or nodal office
- With no nominee on record, the legal heir must claim using succession or legal-heir documents — slower and harder
Good to know
- On death before 60, the nominee can usually take the entire corpus as a lump sum
- The family may instead choose to buy an annuity for a continuing income
- Amounts paid to the nominee on death are generally tax-exempt
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.