NPS gets an upgrade

At first sight, the change is a simple one. The government has introduced a new withdrawal option for subscribers of the National Pension System (NPS). Once they retire, they can now choose to receive part of their pension fund as regular payments until they are 75 years old. These payments can be monthly, quarterly, every six months, or yearly, depending on the subscriber's decision. They can take out up to 60 per cent of their pension in this way. The agencies managing NPS will share this information and provide resources like FAQs and podcasts to help explain how this new option works. In reality, this is a huge enhancement to the NPS and drastically improves the post-retirement situation of NPS members. Before this change, this happens when an employee who has NPS retires: They must use 40 per cent of their total pension savings to buy a regular income stream through an annuity from an insurance company. This is mandatory. The money used to buy the annuity is also not taxed