Big changes might happen soon in the National Pension Scheme (NPS) rules. You might be able to take out all your money from the NPS account, not just 60%, using the Systematic Withdrawal Facility (SLW).
Dr. Deepak Mohanty, the Chairman of the Pension Fund Regulator (PFRDA), talked about this at the recent NPS Thinking Camp.
The PFRDA recently introduced the systematic withdrawal facility for NPS members. With this, you can take out 60% of the money you get after retiring or when you turn 60.
You can take it out monthly, quarterly, half-yearly, or yearly. This option is available from the time you retire until you’re 75 years old. Before, you could only take out the money annually or all at once.
Here’s what will change for subscribers: If the new PFRDA proposal goes through, you could take out 100% of the money through SLW.
This means you don’t have to buy an annuity or a pension plan until you’re 75. You can leave all your money in the NPS account and take some out regularly.
To start the SLW facility, NPS subscribers need to make a request online or offline.
You have to say when you want to start and stop this facility and how much money you want and how often.
The rest of the money stays in the NPS, and you keep getting returns on it.
