PFRDA lets you withdraw more from your NPS at retirement
Big update for future retirees: From December 25, 2025, non-government NPS subscribers can now take out up to 80% of their total savings as a lump sum when they retire—up from the old 60% cap.
This means you only have to use 20% of your corpus for buying an annuity, giving you more control over your money and how you want to use it after retirement.
Who gets this, and what about taxes?
To qualify, you need to have joined NPS before age 60 and been a member for at least 15 years.
If your total savings are ₹8 lakh or less, you can withdraw the full amount. For bigger amounts, the new rules apply.
Just a heads-up: experts say taking out more cash now might mean less steady income later on.
And tax-wise, only the first 60% is tax-free—so keep an eye out for updates on how the rest will be taxed.