InvestorQ : Can I withdraw my NPS contribution before my retirement?
priya Shah made post

Can I withdraw my NPS contribution before my retirement?

Answer
user profile image
Nishita Gala answered.
1 year ago


The National Pension Scheme (NPS) is a voluntary and long-term investment plan for those who want to create their retirement corpus. Under this scheme, one’s savings will be invested in debt and equity market, based on the insured individual’s preference.

Because NPS is aimed at providing the subscriber the income post his/her retirement, it is important for the individual to continue investing until the age of 60.

However, in case an individual requires money and if he/she has been investing in the scheme for at least three years, then the individual may withdraw up to 25% for certain purposes. These special purposes are:

- Children’s wedding

- Children’s higher studies

- Building/buying a house or medical treatment of self/family, among others.

Furthermore, one can make a withdrawal for up to three times (with a gap of five years) in the entire tenure. These restrictions are only imposed on Tier-I accounts and not on Tier-II accounts.