Want to exit from NPS after reaching 60 years? Here’s the procedure

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National Pension System (NPS) is a voluntary retirement savings plan which was launched to enable subscribers to make defined contributions towards planned savings, hence securing their future with the benefit of pension. After exiting from NPS, a minimum of 40 percent of the accumulated pension wealth is going to be used for purchase of annuity. But the subscriber has the choice of choosing more than 40 percent of the accumulated pension to buy annuities. The remaining 60 percent will be given to the subscriber. During the period of deferment, the subscriber can buy an annuity any time via a submission of the request to NPS Trust, or entity, or any intermediary authorised by the authority for this motive.

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How to exit from NPS?

Step 1: A subscriber will have to exit or submit the withdrawal application for the intention of withdrawing the benefits at exit as given in the regulations, on or before the expected exit date from the NPS, to the associated point of presence.

Step 2: In case of subscriber’s demise or if he/she goes missing, the family member(s), nominee(s), or legal heir(s) have to submit the claim settlement application with the necessary documents to the associated point of presence of the subscriber.

If subscriber passes away during the period of automatic continuation

The subscriber’s nominee(s) or legal heir(s) will get his/her whole accumulated pension wealth in case he/she dies during the time of automatic continuation.

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Demise during deferment period

If the subscriber passes away before the due date of extended period of buying annuity, the subscriber’s entire accumulated pension wealth will be paid to his/her nominee(s) or legal heir(s).

Some of the benefits of NPS account:

1. NPS is considered to be the lowest cost pension scheme in the world. The fund management fee and the administrative charges are very low in the plan.
2. It also offers flexibility to the subscriber. They can choose their own investment option and pension fund.
3. It is a very portable account. The subscriber can operate the account from anywhere in the country.