Big upgrade for private-sector NPS investors.
Here’s what has changed:
> Earlier, 60% withdrawal as lump sum + 40% compulsory annuity
> Now they can withdraw 80% as lump sum and 20% for annuity
> 100% lump sum withdrawal allowed for corpus up to ₹8 lakh
> The 5 year lock-in has been removed.
Withdrawals are now governed only by NPS exit rules, with no extra waiting period.
> Normal exit allowed after 15 years or at age 60, whichever is earlier
> Option to continue investing till age 85, if you choose
> NPS corpus can be pledged as security for a loan
> If you give up Indian citizenship, you can withdraw the entire corpus in cash
Overall, NPS has become far more flexible and practical for long-term retirement planning.



