NPS Rules Relaxed: Lower Annuity, No Lock-In for Non-Govt, More Flexibility

• Mandatory annuity purchase reduced from 40% to 20% for general NPS subscribers, allowing 80% lump sum withdrawal.
• Subscribers with corpus up to Rs 8 lakh can withdraw the entire amount; those with Rs 8-12 lakh can withdraw up to Rs 6 lakh lump sum.
• Investment horizon extended to 85 years, allowing longer market exposure and potential for higher returns.
• Five-year lock-in removed for non-government NPS subscribers, enhancing liquidity and flexibility.
• Government employees retain a five-year lock-in; specific withdrawal rules apply based on corpus size (e.g., 100% lump sum for corpus up to Rs 5 lakh).

Why It Matters: NPS rules eased for greater flexibility, lower annuity, and extended investment, benefiting non-govt subscribers.