Can you exit NPS before 60? Here's what the rules say

In 2021, Ravi, a 29-year-old software professional, used the second Covid-induced lockdown to make thoughtful decisions about his finances. Among tax-saving instruments and investment options, the National Pension System (NPS) stood out. It not only offered an additional tax deduction under Section 80CCD(1B) but also provided a low-cost, diversified avenue for retirement savings. Fast forward to today. Ravi is 34, and his financial landscape has changed. He has built a solid emergency fund, invests regularly in mutual funds and stocks. Given these developments, he wondered: “Do I really need to keep my NPS account as I have been disciplined and consistent with my investments?” The question wasn’t rooted in dissatisfaction. NPS had served him well. But he was curious: If my priorities have shifted, can I exit? Understanding NPS exit rules Before deciding, Ravi had to understand the exit provisions under NPS, especially for those exiting before the age of 60 and who are non-government

This article was originally published on June 19, 2025.