NPS Now Pays Monthly Income

PFRDA has launched new Retirement Income Schemes under NPS, letting subscribers withdraw money in planned instalments after retirement instead of taking a lump sum — so your retirement savings last longer and work harder for you.

Here's what happened: PFRDA introduced Systematic Lump Sum Withdrawal (SLW) and Retirement Income Schemes under NPS, giving subscribers structured payout options at retirement instead of a one-time withdrawal.. Subscribers can now choose to keep up to 60% of their NPS corpus invested post-retirement and draw it down in regular monthly, quarterly, or annual instalments over time.. The remaining 40% of NPS corpus still mandatorily goes into an annuity plan from a life insurer — this rule has not changed under the new framework..

What you should do: Log into your NPS account on the CRA portal (cra-nsdl.com or KFintech) and review your current corpus projection before choosing a withdrawal strategy.. Compare annuity rates from empanelled PFRDA insurers like LIC, SBI Life, and HDFC Life — rates vary by 0.5–1% annually and that gap compounds significantly over 20 years.. If you are 5–10 years from retirement, increase your equity (Tier-I, Active Choice) allocation now — a larger corpus gives you more flexibility under the new drawdown options..

Delaying your NPS exit by even 3 years past 60 can grow your corpus by 20–25% — PFRDA allows continued contribution until age 75, and the tax-free 60% lump sum benefit still applies.