National Pension System is a scheme that provides pension benefits to Indian citizens after retirement. Any Indian citizen can open an account in this. It provides a fixed amount every month after the age of 60 to the people at a low premium. It also gives the benefit of the fund on maturity. But if you want to withdraw under this scheme before the age of 60, then you can withdraw money under certain conditions.
NPS is a retirement product, so don’t withdraw money from here. Here money is withdrawn under Tier 1 and Tier 2 options. Tier 2 option is like a savings account, which can be withdrawn and invested at any time. On the other hand, if you come to withdraw money from Tier 1, then there are some conditions for this. The amount can be withdrawn three times before the age of 60 years.
Under what conditions can you withdraw money?
When you become a subscriber under the NPS account, you can withdraw money after three years of opening the account. Any member of the family can withdraw money for a long critical illness, in case of marriage of someone in the house, for the education of children, in case of construction of a house, to pay off any loan already taken, etc.
how much money can you withdraw
According to Pankaj Mathpal, MD, Optima Money, money should be withdrawn only when emergency comes and there is no possibility of getting the money from anywhere else. In these conditions, you should withdraw only 25% and you can withdraw this money thrice.
What is the complete exit rule
On the other hand, if you want to completely exit from this plan, then after 5 years you can exit from this scheme. However, there is a condition for this also. Subscribers can withdraw 20 percent of the money and with 80 percent of the money you will have to buy a pension plan.