NPS Withdrawal Rules 2025: Complete Guide on Partial, Premature, and Normal Withdrawal

If you want to know more about NPS Withdrawal Rules in 2025, it’s important to understand all your options fully. The National Pension System helps you save with tax benefits, but since tax rules keep changing, many investors think about withdrawing their funds. This guide explains everything about partial, premature, and normal withdrawals, who can apply, and answers common questions about NPS withdrawals.

Different Types of NPS Withdrawals and Their Limits

The National Pension System lets you withdraw funds in three main ways. Each comes with specific limits and timelines that you need to follow to get the best benefits.

• Partial Withdrawal: You can withdraw up to 25% of the money you’ve put in. You can do this three times, but only after you’ve completed 3 years.
• Premature Withdrawal: If you’re under 60, premature withdrawal has certain rules. You can withdraw up to 20% if your deposit is less than Rs 2,50,000. The remaining 80% is used to pay you a pension.
• Normal Withdrawal: Once you turn 60 and have invested for at least 3 years, you can withdraw up to 40% of your deposits if the total is not more than Rs 5 lakhs.

Rules and Eligibility Criteria for NPS Withdrawals

Your eligibility depends on your age, how long you’ve invested, and how much you’ve deposited. Here are the main rules for each type of withdrawal.

Partial Withdrawal Details and Process

You can only make a partial withdrawal after 3 years in NPS. You can take out up to 25% of your contributions. You can use this benefit up to three times during your investment period. Partial withdrawal helps when you need money urgently without closing your account.

Premature Withdrawal Guidelines

This applies if you are under 60. Premature withdrawal is allowed after 3 or 5 years depending on conditions. If your deposit is less than Rs 2,50,000, you can withdraw up to 20% as a lump sum; the remaining 80% is converted into a pension, making sure you get regular income after retirement.

Normal Withdrawal Conditions

Normal withdrawal is after you complete 3 years in NPS and turn 60. You can withdraw up to 40% of your investment if it’s not more than Rs 5 lakhs. This lets you take a big chunk of your savings at once, while the rest goes to build your pension.

Frequently Asked Questions on NPS Withdrawal Rules

Q: Can I withdraw all my money from NPS?
A: Yes, if your deposit is Rs 1 lakh or less, you can withdraw everything.

Q: Can I transfer NPS money to other government schemes?
A: No, transferring to other government schemes is not allowed.

Q: Can I withdraw money even if the government hasn’t credited benefits yet?
A: Yes, if your deposit is Rs 1 lakh or less, withdrawal is allowed.

Q: What happens if the account holder dies before 60?
A: The money accumulated goes to the nominee. If there is no nominee, it goes to a family member.

Q: When can I make my first partial withdrawal?
A: You can make your first partial withdrawal only after 3 years of investment. You can do partial withdrawals up to three times in total.

You can invest in NPS until age 75. If you withdraw before 75, usually 60% is paid to you as a lump sum and 40% is turned into a pension to keep your financial security steady. Knowing these rules helps you plan your retirement savings better.

Withdrawal Type	Maximum Withdrawal Limit	Minimum Investment Period	Age Requirement	Additional Notes
Partial Withdrawal	Up to 25% of deposit	3 years	No minimum age	Allowed 3 times
Premature Withdrawal	Up to 20% if deposit < Rs 2.5 lakh	3 or 5 years	Under 60 years	Rest converted to pension
Normal Withdrawal	Up to 40% if deposit < Rs 5 lakh	3 years	60 years or older	Rest converted to pension

For full and official details, visit the National Pension System official site. Follow these guidelines carefully to make sure your NPS withdrawals go smoothly and without any penalty.