National Pension Scheme Withdrawal Rules: 3 Must-Know Facts for a Stress-Free Retirement
Most teachers open their NPS account because it’s “good for retirement” — but very few actually understand how the money comes back to them when they retire. The National Pension Scheme has clear and simple withdrawal rules that can make your retirement stress-free — if you know the 60/40 rule. At age 60, 60% of your NPS corpus can be withdrawn tax-free, while the remaining 40% is used to buy an annuity that provides monthly pension for life. If you exit early, the rules change — and in some situations (like emergencies, illness, or funding a child’s education) you may be allowed to withdraw part of your contribution. Understanding these rules now means your retirement won’t come with surprises later — just clarity, confidence, and steady income when you need it the most.