InvestorQ : What are the applicable provisions for withdrawal of the accumulated pension wealth once an NPS (National Pension Scheme) subscriber attains 60 years of age?
vani Patil made post

What are the applicable provisions for withdrawal of the accumulated pension wealth once an NPS (National Pension Scheme) subscriber attains 60 years of age?

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Nishita Gala answered.
1 year ago
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The National Pension Scheme 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.

The National Pension Scheme, which is voluntary, comes under the purview of the central government as well as the Pension Fund Regulatory and Development Authority (PFRDA).

When a subscriber attains the age of 60, the scheme will allow the subscriber to withdraw 60% of the funds at the time of retirement as a lumpsum amount and the remaining 40% is used for the purchase of the annuity.

Please note, the maturity amount is subject to tax.

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