NPS is among India's most popular investment schemes. Its subscriber base grew eightfold in just 10 years while the asset base soared by 59% annually in the same period.
In 2023, NPS introduced two key changes to help investors choose among different fund managers and enjoy better withdrawal flexibility during retirement. Let’s have a look.
Investors can now pick different fund managers for equity, corporate bonds and government bonds based on their track record. This doesn’t apply to alternative investments.
Investors can now periodically withdraw their corpus through an SLW between the ages of 60 and 75. However, it only applies to withdrawing 60% of the NPS corpus.
SLW does not apply if: 1) There are premature withdrawals 2) The investor dies or becomes incapacitated. The corpus is then paid as a lumpsum to the nominees or legal heirs
To learn how you can implement these changes in your NPS account, click the link below: