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28.9%First documentNPS Withdrawal Rules - How to Withdraw from NPS?Open original ↗
Second documentNational Pension Scheme (NPS): How to Invest & Maximise ReturnsOpen original ↗
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How to Withdraw from NPS?
You may withdraw 100% of the corpus if it is less than or equal to Rs. 5 lakhs when you turn 60 If the corpus is greater than Rs. 5 lakhs, you may withdraw up to 60% when you turn 60.
What are the Types of Accounts in the National Pension System?
Tier I NPS Account - Tier I is a retirement account. On opening a Tier I NPS account, you are allotted a 12-digit permanent retirement account number (PRAN). You can open this account with a minimum contribution of ₹500. However, to keep the account active, you need to contribute at least ₹ 1,000 in a financial year. There is no cap on the maximum investment you can make in your Tier I account. The money you invest in this account is locked until you turn 60. On turning 60, you can withdraw 60% of the corpus as a lump sum. You must use the balance of 40% of the corpus to buy an annuity plan from an insurance company that will pay you a monthly pension. Under Section 80CCD of the Income Tax Act 1961, the investments you make in your Tier I NPS account qualify for tax exemption.
NPS Withdrawal - How to Withdraw from NPS?
Understand the NPS withdrawal process, including rules, eligibility, limits, documents, and tax guidelines for easy access to retirement savings. January 28, 2026 7 minutes read
How to Invest in National Pension System (NPS)?
Choose between managing your funds actively or letting NPS handle it automatically. March 31, 2026 8 minutes read
Using ULIP & PPF
Or you can withdraw a fixed sum and invest it in ULIP plans and PPF. Annual investment up to Rs 2.5 lakhs will keep your ULIP tax-free. You can choose safer funds to ensure steady and safe growth of your capital. ULIPs like Promise4Growth Plus from Canara HSBC Life Insurance allow you to invest in plans which will continue up to the age of 99. Investments up to Rs 1.5 lakhs in PPF are also tax-free.
What are the Alternatives to NPS?
Investments up to ₹2.5 lakh per annum in ULIPs will keep your plans’ maturity values tax-free. Automatic rebalancing options keep your folio benefiting from market volatility.