If you also want to get a big pension after your retirement, then National Pension System (NPS) can be a good option for you. NPS is a government scheme, which is linked to the market, that is, its return is based on the market. In this scheme, you get the benefit of a monthly pension after maturity. If you want, you can also do partial withdrawal at the time of need.

According to NPS Tier-I norms, a person can exit the scheme only after turning 60 years old. Since its purpose is to save for retirement, its rules do not make regular withdrawal easy. However, subscribers have the option to make partial withdrawals during the period of the scheme for important needs. Let us know about the rules of partial withdrawal and premature exit.

Partial Withdrawal
NPS allows subscribers to make partial withdrawals for specific purposes after a lock-in period of 3 years.

After the completion of 3 years, you are only allowed to withdraw 25 percent of your contribution (excluding earned returns).

Contributions made by your employer to your NPS account will not be considered for calculating the partial withdrawal limit.

You can make such withdrawals a maximum of 3 times during the entire investment period.

A person can make partial withdrawals for buying a house, treatment of serious diseases, disability, education, marriage of children, or starting a new venture.

Premature Exit
NPS account remains open till the age of 60, but you can exit it even before that, but for this, you will have to pay some price.

First of all, you can exit this scheme only after completing 5 years. If you have started investing in NPS after completing 60 years of age, then you can withdraw the money after three years.

You can withdraw only up to 20 percent of the amount as a lump sum.

In case of premature withdrawal, you will be able to withdraw only up to 20 percent of the fund in a lump sum.

The remaining 80 percent of the money will have to be used to buy an annuity. This amount will be used to give you a pension throughout your life.

If the total amount deposited in your fund is less than Rs 2.5 lakh, then you will be allowed to withdraw the entire amount in a lump sum.