NPS Changes Update: Subscribers of the National Pension System (NPS) can take advantage of the recent changes if they wish. Changes have been made in the rules related to withdrawal from NPS only last month (NPS withdrawal new rule).
Under this, NPS will allow automatic withdrawal from the corpus fund of the customers from time to time. NPS subscribers have the option to withdraw up to 60% of their pension fund through SLW (Systematic Lump Sum Withdrawal) on monthly, quarterly, half-yearly or yearly basis as per their choice up to the age of 75 years at the time of their normal withdrawal. There is permission.
Understand what is SLW
SLW facility is like Systematic Withdrawal Plan (SWP) under mutual funds. According to Livemint news, with the SLW facility, NPS subscribers can withdraw the amount systematically at regular fixed periods. According to Livemint news, keep in mind that on reaching 60 and 75 years, customers will have to allocate at least 40% of their funds to buy annuity.
SLW allows retirees to receive periodic cash flow, enhance their post-retirement income and cover regular expenses. This withdrawal process (NPS withdrawal new rule) can be opted once and payment will be made as per the choice of the subscriber.
Who will benefit from this change?
According to Livemint news, SLW is an attractive option for retirees who want a consistent source of income during their post-retirement years. This can be requested when a subscriber retires and applies for a lump sum NPS (National Pension System) corpus after purchasing an annuity. NPS is a pension program run by the Government of India, which is regulated by PFRDA. An NPS subscriber invests in the capital markets (equities, government securities, corporate bonds and alternative assets) as per his risk appetite to build his retirement fund.
