NPS withdrawal rules at a glance (after the December 2025 change)
| Corpus at exit (age 60+) | Lump sum | Annuity |
|---|---|---|
| Up to ₹8 lakh | Up to 100% | Optional |
| ₹8 lakh – ₹12 lakh | Up to ₹6 lakh | Rest via annuity or systematic withdrawal |
| Above ₹12 lakh (private / all citizen) | Up to 80% | At least 20% |
| Above ₹12 lakh (government) | Up to 60% | At least 40% |
| Exit before 60 | Up to 20% (100% if ₹5 lakh or less) | At least 80% |
You can now stay invested until age 85. Rules can change: confirm with your CRA (Protean, KFintech or CAMS) or the PFRDA website before exiting. Figures are estimates, not financial advice.
Related: Retirement planner · EPF calculator · PPF calculator · Income tax calculator
How to use the NPS Calculator (2026 exit rules) tool
- Enter your age, monthly NPS contribution and your employer's share.
- Choose the expected return, the annuity share and the annuity rate.
- See your corpus at retirement, the lump sum you can take and your monthly pension, under the current exit rules.
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Frequently asked questions
How much can I withdraw from NPS at 60?
Under the PFRDA rules amended in December 2025: if your corpus is ₹8 lakh or less you can withdraw all of it. Between ₹8 and ₹12 lakh you can take up to ₹6 lakh as a lump sum and the rest through an annuity or systematic withdrawal. Above ₹12 lakh, non-government subscribers must use at least 20% to buy an annuity and can take up to 80% as a lump sum (government employees: 40% annuity, 60% lump sum).
Is the NPS lump sum tax-free?
60% of the corpus withdrawn at retirement is tax-free. The rules now let private-sector subscribers take up to 80%, but the income-tax treatment of the extra 20% had not been clarified when the withdrawal rules changed. Check the latest rules before you withdraw more than 60%. The pension (annuity) is taxed as income every year.
What pension will I get from NPS?
Your monthly pension is the annuity amount × the annuity rate ÷ 12. With ₹50 lakh in an annuity at 6%, the pension is ₹25,000 a month. Annuity rates depend on the insurer and the plan you choose (with or without return of purchase price).
What return does NPS give?
Equity-heavy NPS schemes have historically returned around 9–12% a year over long periods; government-bond schemes less. Returns are market-linked and not guaranteed, so plan with a conservative rate such as 9–10%.
What are the NPS tax benefits?
Under the new tax regime, your employer's NPS contribution (up to 14% of basic + DA) is deductible. Under the old regime you also get an extra ₹50,000 deduction for your own contribution over and above the ₹1.5 lakh 80C limit.
Can I exit NPS before 60?
Yes, but at least 80% of the corpus must then buy an annuity, unless the corpus is ₹5 lakh or less, in which case you can withdraw it all.