PFRDA allows 80% withdrawal from NPS: Here's how to avail
18 Dec 2025

The Pension Fund Regulatory and Development Authority (PFRDA) has made a major change to the National Pension System (NPS), allowing non-government subscribers to withdraw up to 80% of their accumulated corpus. Earlier, the limit was set at 60%.

The remaining 20% amount will be used for purchasing annuities that provide pension benefits.

This new rule applies to normal exit scenarios, such as reaching the age of 60 or completing the minimum subscription period.

Full withdrawal limit increased to ₹8 lakh
Withdrawal options

For those with a corpus of up to ₹8 lakh, the new rules allow full withdrawal of the balance. Previously, this limit was ₹5 lakh.

For subscribers with an accumulated balance between ₹8-12 lakh, they can withdraw up to ₹6 lakh as a lump sum or opt for periodic payouts through systematic unit redemption (SUR) or systematic lump sum withdrawal (SLW).

Annuity purchase and withdrawal options
Annuity rules

The new regulations also mandate that at least 20% of the pension wealth must be used to buy an annuity. This applies at normal exit points or in case of exit between ages 60-85.

For subscribers with an accumulated pension wealth above ₹12 lakh, it is mandatory to buy an annuity from 20% of the accumulated corpus while they can withdraw up to 80% as a lump sum.