# NPS full withdrawal allowed if corpus is Rs 5 lakh or less 2026-09-28T13:37:52+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The National Pension System allows full withdrawal of the corpus only when it is Rs 5 lakh or less at the time of a normal exit, which is at age 60 or upon retirement. If the corpus exceeds Rs 5 lakh, at least 40% must be used to purchase an annuity that provides regular pension payments, and the remaining 60% can be withdrawn as a lump sum. For premature exits before age 60, the full withdrawal limit is Rs 2.5 lakh. Above that amount, at least 80% of the corpus must go toward an annuity, with only 20% available for upfront withdrawal. Subscribers who join after age 60 can make a normal exit after three years, subject to the same Rs 5 lakh threshold. In case of death, non-government subscribers' entire corpus goes to nominees or legal heirs. For government subscribers who die before normal exit, full withdrawal is allowed up to Rs 5 lakh, above that, at least 80% funds an annuity for dependents. Subscribers may also postpone withdrawals or continue contributing until age 75. ## Indian Opinion Analysis The Rs 5 lakh threshold for full NPS withdrawal has been in place since the Pension Fund Regulatory and Development Authority (PFRDA) revised exit guidelines in 2021. For most private-sector subscribers with small balances, this means they can take the entire amount at retirement without buying an annuity. However, for those with larger accumulations, the mandatory annuity purchase locks in a portion of savings, reducing the lump sum available for other needs. The government's rationale has been to ensure a regular post-retirement income stream. Subscribers approaching retirement should check their current corpus against these limits to plan their withdrawal strategy. ## Coverage - livemint.com Tags: annuity, NPS, pension, PFRDA Canonical: https://indianopinion.org/nps-full-withdrawal-allowed-if-corpus-is-rs-5-lakh-or-less/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/nps-full-withdrawal-allowed-if-corpus-is-rs-5-lakh-or-less/#story-in-brief