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 can opt for deferment in the following ways:
- 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 systematically in tranches. This can be done at any point of time during the deferment period, at the frequency of your choice.
- Defer purchase of an annuity until 75 years of age, from the date you turn 60 years or reach superannuation age.
- Defer withdrawal of lump sum amount and the purchase of an annuity.
During the period of deferment, the maintenance charges and fee payable under the National Pension System in respect of the individual pension account/Permanent Retirement Account, shall continue to remain applicable.
Continuation under NPS (Beyond 60 years of age or the age of superannuation)
Non-Government Subscribers (All Citizens/ Corporate)
1. Subscriber who desires to continue in the National Pension System and contribute to his retirement account beyond the age of sixty years or the age of superannuation shall have the option to do so by submitting request to his/her associated POP/POP-Corporate before 15 days of attaining sixty years of age or age of superannuation.
2. Automatic Continuation: Where a subscriber in the non-government sector does not exit from the National Pension System beyond the age of sixty years, or the age of superannuation then such subscriber shall continue to remain subscribed to the National Pension System till he or she attains the age of seventy-five years.
3. For subscribers with an employer-employee relationship, the individual pension account/ Permanent Retirement Account shall be shifted from the employer to All Citizens model.
Government Subscribers
1. A government subscriber who desires to continue in the National Pension System and contribute to his retirement account beyond the age of sixty years or the age of superannuation shall have the option to do so by submitting his/her request to its associated nodal office before 15 days of attaining age of superannuation.
2. A subscriber who has not exercised the option within the stipulated 15-day period but desires to continue may do so by making an application in writing with reasons for such delay to the National Pension System Trust.
3. When this option is exercised, the individual pension account/ Permanent Retirement Account shall require to be shifted from Government sector to All citizens.
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 (as per the old tax regime).
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.
View Exits & Withdrawals Regulations