10 new NPS rules you must know for planning your retirement and loans in 2026 and beyond

The new rules also allow subscribers to take a loan against NPS corpus and even make a partial withdrawal to settle such loans.

This article summarises 10 new rules, including withdrawal and loans for subscribers under the All Citizen Model and Corporate sector, that you must know for planning your retirement or loans in 2026 and beyond.

There is no lock-in period. Now you can exit at any time. The entry and exit ages have been increased to 85 years

The vesting period under the All Citizen Model for a normal exit is 15 years or till 60 years of age (whichever is earlier).

Under the Corporate Sector, the vesting period for normal exit is till the age of retirement/superannuation.

The following rules apply to both All Citizen Model and Corporate Sector (CS & MSF)

a) You can withdraw up to 80% as a lump sum. You need to buy an annuity plan for at least 20% of the total corpus.

b) If Corpus ≤ ₹8 lakh: 100% lumpsum or Systematic Lump Sum Withdrawal (SLW) or Systematic Unit Redemption (SUR), or up to 80% lumpsum and at least 20% annuity

c) Corpus > ₹8 lakh ≤ ₹12 lakh: Up to ₹6 lakh as lump sum and balance as SUR for minimum 6 years or annuity, or up to 80% lumpsum and at least 20% annuity

d) Corpus > ₹12 lakh: Up to 80% lumpsum and at least 20% annuity

a) Under both All Citizen Model and Corporate Sector (CS & MSF), you can withdraw up to 20% lumpsum. You need to buy annuity with at least 80% corpus.

b) If Corpus ≤ ₹5 lakh: 100% lumpsum or SLW or SUR, or up to 20% lumpsum and at least 80% annuity

c) If Corpus > ₹5 lakh: Up to 20% lumpsum and at least 80% annuity

Under both All Citizen Model and Corporate Sector (CS & MSF), 100% lumpsum withdrawal is allowed. Nominees of subscribers can also opt for annuity, SLW or SUR if they want.

There is no lock-in or vesting period. Can exit any time

• Up to 80% lumpsum and at least 20% annuity is mandatory.

• If corpus ≤ ₹12 lakh: 100% lumpsum or SLW or SUR, or, up to 80% lumpsum and at least 20% annuity

• If corpus > ₹12 lakh: Up to 80% lumpsum and at least 20% annuity.

• 100% lumpsum can be withdrawn. One can also opt for annuity, SLW or SUR.

No. You do not need to give any intimation. Subscribers can automatically continue under NPS after retirement.

You can seek financial assistance from a regulated bank and the lender may mark lien or charge on the individual pension account up to 25% of your own contribution.

a) Before 60 years age/superannuation (whichever is later):

• Frequency: 4 times

• Interval: 4 years between two withdrawals

b) Post 60 years age/superannuation (whichever is later):

• Frequency: Any number of times

• Interval: 3 years between two withdrawals

• For home purchase: One-time withdrawal allowed to subscribers who do not already own a house (other than ancestral property).

• For treatment: You can make a partial withdrawal for your own medical treatment/hospitalisation, or for your spouse, children, and parents.

• For settling loans: Partial withdrawal can also be made for the settlement of a loan against NPS taken from or a regulated bank.

Here’s a structured table summarizing your detailed points for clarity:

"Finalized after extensive stakeholder consultations, these measures aim to provide subscribers greater flexibility, choice, and autonomy in investment decisions and managing their accumulated pension wealth, recognizing that non-government NPS participation is voluntary. Clear and well-structured exit provisions are expected to encourage entry and sustain participation by balancing subscriber needs and pension objectives across different stages of their life cycle," PFRDA said in a release.