If you want to continue to stay invested in NPS after reaching 60 years of age or superannuation, you can do so. NPS gives an option of deferring your exit or withdrawal from NPS till the maximum age of 75 years.
Deferment
To continue being a subscriber of NPS even after reaching superannuation, you are required to initiate deferment request 15 days prior to the attainment of superannuation age/ 60 years of age. In case you have opted for deferment, you will not be able to contribute to your PRAN during the deferment period.
Deferment Options Available
You are allowed to defer your exit for the following processes:
- Defer withdrawal of lump sum amount until 75 years of age. You may decide to defer only the lump sum withdrawal and choose to purchase the mandatory annuity. You can also withdraw the deferred lump sum amount in phases. This can be done at any point of time during the deferment period, at the frequency of your choice.
- Defer purchase of an annuity for a maximum of 3 years, from the date you turn 60 years or reaching superannuation age.
- Defer withdrawal of lump sum amount and the purchase of an annuity. In this case, the charges pertaining to your PRAN is applicable.
Continuing with NPS
You need to initiate your request for continuation under NPS 15 days prior to the attainment of superannuation age/ 60 years of age.
If you do not submit a written request for continuation under NPS 15 days prior to turning 60 years or reaching superannuation, it will be automatically considered that you are continuing with NPS.
You can submit an application in writing to the your POP / nodal office, stating the reasons for the delay in intimating your intent to continue under NPS. In case of eNPS subscribers the request can be submitted to NPS Trust.
Once you have exercised the option to continue with NPS, the other options of deferment will not be available to you.
During the continuation period, you are allowed to continue to contribute to your PRAN and enjoy the tax benefits. You can also continue to avail all the options and facilities of a normal NPS account, like access to the CRA system, switching asset classes and fund managers, etc.
With the promise of flexibility built into NPS, the scheme allows you to opt for exit from NPS anytime and start a pension during the continuation period.
For any query or assistance on Exit & Withdrawal, please contact us at dept-exit@npstrust.org.in
View Exits & Withdrawals Regulations