There is good news for those who have invested in the National Pension Scheme System (NPS). Now withdrawing money from NPS is going to be more convenient.
The Pension Fund Regulatory and Development Authority (PFRDA) is now going to provide systematic withdrawal option to the subscribers, eliminating the requirement of one-time withdrawal of 60 per cent of the total deposits. When the new rules come into force, the subscribers will be able to withdraw their money from time to time on monthly, quarterly, half-yearly or yearly basis till the age of 75 years.
Under the current rules, when the NPS subscriber turns 60, he can withdraw up to 60 percent of the lump sum retirement corpus. The remaining 40 percent of the corpus essentially goes into buying an annuity. Pension is received from this annuity. Subscriber can keep his entire amount in NPS account till the age of 75 years. He also gets the facility of phased withdrawal of 60 percent of his capital on an annual basis. For this one has to apply every year.
Will get more withdrawal options
According to media report, PFRDA Chairman Deepak Mohanty says that the pension fund regulator will no longer allow NPS subscribers to withdraw 60 per cent of the corpus in lump sum, instead of allowing subscribers till the age of 75 years. Is going to offer the facility of withdrawing money on monthly, quarterly, half-yearly or yearly basis.
The Systematic Lumpsum Withdrawal (SLW) option will greatly benefit the subscriber. In this way, from time to time, after partial withdrawal, the subscriber will get the return on the amount deposited.
Tier-I and Tier-II accounts will get this facility
Mohanty says that NPS subscribers can opt for systematic lumpsum withdrawal option for the next 15 years after retirement. On choosing the Systematic option, the NPS subscriber will continue to receive monthly, quarterly or half-yearly amounts till the age of 75 years. This facility will be provided for both Tier-I and Tier-II accounts. For Tier II account holders also lump sum withdrawal option can be started before turning 60 years.
