The Pension Fund Regulatory and Development Authority (PFRDA) has allowed subscribers to withdraw your entire accrued pension wealth with out buying annuity if the pension corpus is lower than ₹5 lakh. Currently, NPS subscribers having a corpus of over ₹2 lakh on the time of retirement or attaining the age of 60 years want to purchase an annuity, provided by insurance coverage corporations, on a compulsory foundation.
They can take out the remaining 60 per cent as a lump sum. In a gazette notification, the pension regulator additionally said that the untimely withdrawal restrict on a lumpsum foundation for NPS has been elevated to ₹2.5 lakh from ₹1 lakh. “…the place the accrued pension wealth within the Permanent Retirement Account of the subscriber is the same as or lower than a sum of ₹5 lakh, or a restrict as specified by the Authority, the subscriber shall have the choice to withdraw your entire accrued pension wealth with out buying annuity and upon such train of this selection, the fitting of such subscriber to obtain any pension or different quantity beneath the National Pension System or from the federal government or employer, shall extinguish,” it mentioned.
The regulator additionally elevated the utmost age of entry into the National Pension System (NPS) from 65 to 70. The exit age restrict has additionally been prolonged to 75 years.
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