NPS Withdrawal: How to withdraw money before retirement? What is the rule of NPS?

“National Pension System (NPS) is a scheme to provide pension to the employees after retirement. Normally you cannot withdraw money from NPS before 60 years or retirement. But there are some situations when you can get emergency money from this pension fund. In NPS you can invest at least Rs. 1,000 and you can deposit as much as you want. There are two types of accounts in NPS, Tier 1 and Tier 2 accounts. Tier 1 is purely a retirement account with no provision for withdrawal before the age of 60 years. On the other hand, Tier 2 account gives you the facility of NPS withdrawal.

હવે,, આયુષ્યમાન કાર્ડ પર મળશે રૂ.૧૦ લાખ સુધીની સહાય

••• આયુષ્યમાન ભારત કાર્ડ પર કુલ ખર્ચની રકમ 05 લાખથી વધારીને 10 લાખ
❓ શું તમારી પાસે આ આયુષ્યમાં કાર્ડ નથી તો અત્યારેજ જાણો અને કરો અરજી આ કાર્ડ માટે અહીંથી...

જાણો આ લિંકથી સંપુર્ણ વિગતે
👉 અહીં ક્લિક કરો

તમારા,,, દરેક મિત્રોને શેર કરવા વિનંતી ...🙏

Read in Gujarati

It is believed about NPS that money cannot be withdrawn from this account before retirement or 60 years. But this is not true. Like other schemes, partial withdrawal facility is available in case of emergency, the same facility is available in NPS. However, there are some special rules, following which money can be withdrawn from NPS. For example, money can be withdrawn from NPS for higher education of self, children or spouse, marriage of children. Let us tell you in which situations you can withdraw money from NPS. According to the NPS website\/all-faq-withdrawal.php money can be withdrawn under the following circumstances

  • A member should be associated with NPS for at least 3 years
  • The amount of withdrawal should not exceed 25% of the contribution made by the member
  • Withdrawals can be made up to three times during the entire membership period
  • Withdrawal is allowed only for certain reasons, such as higher education of children, marriage of children, purchase/construction of a residential house
  • for the treatment of serious diseases

When can the account be closed?

If an employee wants to withdraw from NPS then there are certain conditions for him. According to the Pension Fund Regulatory and Development Authority, the lock-in period of NPS is 5 to 10 years. If a member wants to close the NPS account then he will get this facility after 5 years of operation of the account. That is, you can close the NPS account only after 5 years. This is the rule for the self-employed. If you are a salaried individual then you have to maintain the account for 10 years. Only then you can close the account. This is called pre-mature exit.

Full amount is not available on pre-mature exit or premature closure. If you close the account before retirement or before 60 years, then you have to buy annuity from 80 percent of the total amount deposited in the pension fund. Regular and monthly pension will be given from this annuity. The rest of the money can be taken in one go. Keep in mind that if you are a salaried individual, the option to exit NPS is available only after 10 years. If the total amount deposited in the Pension Fund is less than or equal to 2.5 lakhs, you will get the full amount on account closure. If the member dies before retirement, the total amount deposited in the Pension Fund is passed on to his nominee.

what to do to withdraw money

You can initiate the online process for partial withdrawal. Alternatively, you can submit Partial Withdrawal Form (601PW) to the POP along with the documents. Based on this the POP can initiate the online request. However, the POP is required to authorize the withdrawal request in the CRA system. Then your money will be gone.