NPS has a new withdrawal option. What you should know

Jun 2, 2026 | 11:01 IST

Retirees can also choose structured, market-linked payouts to better manage longevity risk

The National Pension System (NPS) landscape has seen several reforms in recent months. After major changes to exit and investment norms last year, the latest reform targets the withdrawal phase.

At present, while at least 20% of the corpus has to be compulsorily used to purchase an annuity, the remaining 80% can either be withdrawn as a lump sum or accessed gradually through the existing systematic lump sum withdrawal (SLW) facility, where subscribers decide the amount and timing of withdrawals.

TOI

TOI

NPS has a new withdrawal option. What you should know

Retirees can also choose structured, market-linked payouts to better manage longevity risk

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TOI

NPS has a new withdrawal option. What you should know

Retirees can also choose structured, market-linked payouts to better manage longevity risk

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