Maturity Benefits

Upon maturity, if your corpus exceeds 2 lakhs, you will only be allowed to withdraw 60% of the corpus (tax free u/s Section 10 (12A) as a lump sum. The rest of the 40% will be annuitized.

7 different kinds of annuity plans approved by the PFRDA

  • Annuity for life
  • Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter
  • Annuity for life with return of purchase price on death
  • Annuity for life increasing at a simple rate of 3% p.a
  • Annuity for life with a provision of 50% of the annuity payable to spouse of the annuitant for life after death of the annuitant
  • Annuity for life with a provision of 100% of the annuity payable to spouse of the annuitant for life after death of the annuitant
  • Annuity for life with a provision of 100% of the annuity payable to spouse of the annuitant for life after death of the annuitant, with return of purchase price on the death of the last survivor

Post-maturity investments

  • A subscriber may extend the investment period up to 70 years of age
  • Fresh contributions are allowed during such a period of deferment
  • Minimum 40% has to be used for buying annuities from an approved annuity service provider
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Partial Withdrawals

Tax-free partial withdrawals in NPS are allowed after a 3-year lock-in period up to a maximum of 25% of the total amount invested in individual capacity.

Partial withdrawal is allowed subject to the following condition

  • Children’s higher education
  • Marriage of children
  • Purchase /construction of house
  • Critical illness (including Covid 19)
  • Disability (more than 75%)
  • Skill Development or re-skilling any other self-development activities
  • Establishment of own venture or start up

Please note:

  • Individual subscribers will only be allowed a maximum of three withdrawals during the entire tenure of subscription
  • Premature withdrawals in NPS are not allowed from the employer contributions

Premature Exit

Premature or early exits are allowed on completion of the 10th year in NPS but a lumpsum withdrawal is limited to a maximum of 20% of the total amount.

A premature exit from NPS is permitted subject to the following conditions

  • Only 20% of the total corpus can be withdrawn
  • The remaining 80% has to be used to purchase a life annuity from any PFRDA empanelled Life Insurance Company
  • If Corpus < Rs. 1.00 Lac, complete withdrawal may be opted
  • The NPS account will be closed post withdrawal 

Death Claims

Before Maturity
In case of the unfortunate demise of the subscriber before completion of 60 years/maturity, the nominee can withdraw 100% of the corpus.


After Maturity
Nominee / Legal heir would receive proceeds as per the selected annuity plan (pension).

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