Invest in NPS for your retirement. But you will also not want to touch your investment even when you want to.
That’s why some NPSs (partial withdrawals) have been allowed on some special occasions.
Let us know about the NPS withdrawal rule.
One thing to note here can be two main types of NPS accounts.
- Government Sector NPS (Government NPS)
- All Citizens Model
On some points, these two types of NPS can have different rules.
- NPS return rule (Partial Withdrawal Rules in NPS)
You can withdraw up to 25% of your contribution (excluding Employer’s contribution) for the following expenses. Partial withdrawal is allowed.
- First house build/purchase
- For children’s higher education or marriage.
- For the treatment of 13 specific diseases of self, husband, children and dependent parents, or for treatment after any accidents.
Please note that your contribution means only the principal amount. You cannot remove your investment tax.
- Focus on these things.
- You can withdraw money only after 10 years of opening an NPS account.
- Overall, you can withdraw money only three times.
- There should be a gap of at least five years between withdrawal of money. This restriction does not apply to the treatment of voracious diseases.
- Specific illnesses include cancer, pulmonary arterial hypertension, multiple sclerosis, major organ transplant, coronary artery bypass graft, aorta graft surgery, heart valve surgery, stroke, myocardial infarction, coma, total blindness and paralysis.
As the name suggests, NPS calculator SBI lets you estimates how much will you receive as pension at age 60 of your retirement. This gives you an idea about how much to invest monthly, starting now, so as to receive a suitable corpus on retirement!
- What documents are required for partial withdrawal (withdrawal) from NPS?
- For Children’s Studies: Admission letter and Fee Schedule
- For Children’s Marriage: Self Declaration
- To buy/build the first house: Self Declaration; Apart from this, photocopy of property papers/offer plan or loan offer from the bank
- In case of critical illness: Certificate from the doctor
- If the NPS account is closed
- We have seen above the rules of withdrawal (partial withdrawal) from NPS. If you have to close the NPS account, then what are the rules for this?
- If you close the account before the age of 60 or before retirement (Voluntary exit before 60 or age of superannuation)
- If you want to stop NPS account before the age of 60 years, you do not have to purchase an annuity (annuity plan) amount less than 80% of deposits. Only 20% of the amount as a lump N.
- Pay attention, if you have your Indian account All Citizen Model (All Citizens Model) are, then you can only after ten years of opening the account closure only NPS account. This official NPS is no restriction.
- This restriction shall not apply while less than your deposit Rs 1 lakh. In such situations, you can remove a lump of money. There is no need to purchase an annuity.
- What is the rules for closing the NPS account at 60 years of age?
If you want to stop NPS account at the age of 60 years old or retired, you do not have to purchase an annuity (annuity plan) amount less than 40% of deposits. The amount is only 60% have access to a lump removed.