For its pensioners, the PFRDA has suggested a Systematic Lump Sum Withdrawal (SLW) facility. This permits NPS members to take withdrawals of up to 60% of their entire pension fund on a monthly, quarterly, half-yearly, or annual basis—that is until they reach the age of 75.
Pensioners may take periodic transfers of up to 60% of their funds through the Systematic Lumsum Withdrawal (SLW) facility, which is permitted by the Pension Fund Regulatory & Development Authority (PFRDA) for NPS subscribers.
For its pensioners, the PFRDA has suggested a Systematic Lump Sum Withdrawal (SLW) facility. This permits NPS members to take withdrawals of up to 60% of their entire pension fund on a monthly, quarterly, half-yearly, or annual basis—that is until they reach the age of 75.
As per the current exit guidelines, subscribers who are over 60 years old or have reached superannuation can postpone taking an annuity and transferring the lump sum in any combination until they are 75 years old. You have the option to withdraw the lump sum amount all at once or on an annual basis.
PFRDA has requested that the NPS authorities notify all investors who are about to turn 60 or who are considering leaving the scheme about the new SLW facility. PFRDA has asked the Central Record Keeping Agencies (CRAs), who oversee KYC-related procedures for NPS investments, to notify their subscribers about the new program.
The PFRDA published an advisory on October 27, 2023, outlining the specifics of this new lump sum withdrawal choice. SLW has several benefits, including steady cash flows, the ability to build wealth through the combination of it with an annuity, and tax benefits for all such withdrawals of funds.
To secure their non-working years, members of the National Pension System (NPS) can choose to contribute monthly to either their Tier I or Tier II accounts. In addition, the amount contributed is credited with monthly interest. The NPS interest rate is computed on a compounding basis, which ultimately results in the construction of a sizable corpus. It typically falls between 9% and 12%.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "PFRDA, Systematic Lump Sum Withdrawal, 60% withdrawal from NPS, National Pension System, NPS interest rate, NPS interest, NPS wi")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}