NPS Rules Changed: Stay Until 85, Get 100% Lump Sum on Exit!

• PFRDA changed NPS rules, allowing non-government employees to withdraw up to 80% of their retirement fund as a lump sum on exit.
• Subscribers can now remain in the NPS scheme until age 85, extending the investment period for both government and private sector employees.
• For funds up to ₹8 lakh, 100% lump sum withdrawal is optional. For funds over ₹12 lakh, 80% lump sum is allowed with 20% compulsory annuity.
• The mandatory annuity investment for non-government subscribers has been reduced from 40% to 20% of the pension fund.
• These significant changes were notified by PFRDA on December 16, 2025, enhancing flexibility for NPS participants.

Why It Matters: NPS rules offer greater flexibility: extended age limit, higher lump sum withdrawal options, and reduced annuity.