Withdrawal & Exit Rules

Understand Your Liquidity Options Throughout the NPS Tenure

The Liquidity Timeline

NPS is designed for retirement, but it provides flexibility for your life's important milestones.

Year 3
Partial Withdrawal Begins

Allowed up to 3 times during the entire tenure for specific reasons.

Limit: 25% of own contributions
Anytime
Tier II Withdrawal

Tier II account is fully liquid. Withdraw any amount, anytime without restrictions.

Limit: 100% Liquidity
Age 60
Superannuation (Maturity)

The standard exit point for NPS subscribers.

60% Lump Sum (Tax-Free)
40% Annuity (Pension)

Reasons for Partial Withdrawal

🎓

Higher Education

For children's higher education, including vocational courses.

💍

Marriage

For the marriage of children (son or daughter).

🏠

Home Construction

For purchase or construction of your first residential house or flat.

🏥

Medical Emergencies

Treatment of specified critical illnesses for self, spouse, children, or parents.

🚀

Startup/Skill Dev

Newer provisions allow withdrawals for skill development or starting a venture.

Premature Exit

If exiting before 60, 80% must be used for annuity unless corpus is < ₹2.5L.

In Case of Death

In the unfortunate event of the subscriber's death, the **entire accumulated pension corpus (100%)** is paid to the nominee or legal heir of the subscriber as a lump sum. There is no mandatory annuity requirement for nominees.