We all worry about a good and self-sufficient future. Keeping this in mind, everyone saves. However, in this era of inflation, investing your savings in a good place is the best option.Â
If you are saving for the long term and retirement, then you can invest that money in the National Pension System. After investing in this, your future will be secure and you will be able to lead a self-sufficient life after retirement. After investing in the National Pension System, you can also withdraw your money prematurely. In this, options will be available to open Tier-1 and Tier-2 accounts. If your account is opened in Tier-2, then there are better options for withdrawing money. In this episode, let us know about the terms and conditions for withdrawing money from the National Pension System –
PFRDA has maintained an average rule of 80:20 for withdrawal of funds. This rule of PFRDA is applicable for employees working in both government and private places. If you withdraw money from this scheme prematurely, you can withdraw only 20 per cent of your corpus.
At the same time, you will have to use the remaining 80 percent to buy the pension scheme. PFRDA had also issued a circular regarding this. If the corpus of your pension fund is less than Rs 2.5 lakh, you can withdraw the entire amount in one go.
If you withdraw your money from the NPS scheme before maturity, it will be called a pre-mature exit. At the same time, on completion of 60 years, you can withdraw the corpus up to 5 lakhs. If the corpus is more than 5 lakhs, then you can withdraw only 60 percent of it. The rest of the child portion will have to be used for pension.
Meanwhile, if the customer unfortunately dies, the entire money will be handed over to the nominee. The money will be given to the nominee based on the terms and conditions.
