NPS Rules Changed: Withdraw 80% of Corpus at Retirement! PFRDA Issues Notification

• PFRDA has significantly amended National Pension System (NPS) rules for non-government subscribers, allowing greater flexibility at retirement.
• Subscribers can now withdraw up to 80% of their total corpus at retirement, a major increase from the previous limit.
• The mandatory annuity purchase requirement has been reduced from 40% to just 20% of the accumulated amount.
• For corpus up to ₹8 lakh, full lump sum withdrawal is optional; for ₹8-12 lakh, ₹6 lakh can be withdrawn; for over ₹12 lakh, 20% annuity is mandatory, 80% lump sum.
• This change applies to subscribers under the All Citizen Model and Corporate NPS, offering more control over retirement savings.

Why It Matters: PFRDA's new NPS rules offer non-government subscribers more control with increased lump sum withdrawal.