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NPS withdrawal calculation: How much you'll get in hand from ₹5 lakh to ₹1 crore corpus now
6 min read | Updated on December 17, 2025, 18:13 IST
SUMMARY
NPS lump sum withdrawal calculation: Till now, many investors have seen the mandatory annuity purchase with 40% of the corpus as an unnecessary restriction on the freedom to use one's own money. However, the new rules mean investors will have more freedom to plan what they want to do with their savings.
Know how much lump sum you can withdraw under different scenarios as per new rules. | Image source: Shutterstock
Effective from December 12, 2025, the PFRDA has changed the mandatory annuity purchase rule, allowing eligible investors to withdraw up to 80% of their corpus or accumulated pension wealth (APW) as a lump sum. Now you need to buy an annuity plan with only 20% of the APW, while the balance can be withdrawn as a lump sum or periodically through systematic lump sum withdrawal (SLW) or systematic unit redemption.
But there are some conditions to become eligible for the 80% lump sum withdrawal. Such as, you must have completed 15 years under NPS, or attained the age of 60, or officially retired from employment.
The regulator has also allowed up to 100% lump sum withdrawal in a situation where the total corpus on exit after meeting the above conditions is not more than ₹8 lakh. Full withdrawal is also allowed when the corpus is not more than ₹12 lakh, but in two parts: ₹6 lakh as a one-time payment and the balance as a systematic periodic withdrawal.
Multiple conditions for withdrawals under the new rules may make it difficult for you to calculate how much money you will receive in hand after exiting NPS. This article aims to provide a complete summary of the withdrawal conditions for non-government subscribers, followed by examples.
First, let us look at the rules:
There are five different exit scenarios under the new rules. The amount you will get in hand on exit from NPS will depend on the following rules for different exit scenarios:
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If the amount is less than or equal to ₹8 lakh: Full amount can be withdrawn, or you can purchase an annuity with 20% and draw the balance as a lump sum.
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If the amount is more than ₹8 lakh but less than or equal to ₹12 lakh: Up to ₹6 lakh can be withdrawn as a lump sum and the balance as systematic unit redemption for six years. Or, you can also withdraw ₹6 lakh as a lump sum and buy an annuity with the balance, or you can withdraw 80% as a lump sum and buy an annuity with 20% of your accumulated pension wealth.
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If the amount is more than or equal to ₹12 lakh: You can withdraw up to 80% as a lump sum and buy an annuity with 20%.
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The full amount can be withdrawn as a lump sum if the total is less than or equal to ₹5 lakh. Or, you can buy an annuity with 80% and draw 20% as a lump sum.
-
If the total is more than ₹5 lakh, you can withdraw 20% as a lump sum and buy an annuity with at least 80%.
- Up to 100% of the corpus can be withdrawn as a lump sum.
-
If the corpus is less than or equal to ₹12 lakh: Full amount can be withdrawn as a lump sum, or you can buy an annuity with 20% and get 80% as a lump sum.
-
If the corpus is more than ₹12 lakh: You need to buy an annuity with 20% and get 80% as a lump sum.
- The full amount can be withdrawn.
Now, let's look at some examples:
The following tables show the maximum lump sum withdrawal allowed under the new rules, assuming different amounts of the total accumulated pension wealth under NPS
When the APW is ₹5 lakh
| Scenario | Maximum lump sum withdrawal allowed |
|---|---|
| 1. After ≥15 years, or on attaining 60 years, or on superannuation, or physical incapacitation | ₹5 lakh |
| 2. Voluntary exit before 15 years or before 60 years or before superannuation | ₹5 lakh |
| 3. Exit by individuals joining on or after 60 years | ₹5 lakh |
| 4. Upon death of the subscriber | ₹5 lakh |
| 5. Death of an individual who joined on or after 60 years | ₹5 lakh |
When the APW is ₹15 lakh
| Scenario | Maximum lump sum withdrawal allowed |
|---|---|
| 1. After ≥15 years, or on attaining 60 years, or on superannuation, or physical incapacitation | ₹12 lakh |
| 2. Voluntary exit before 15 years or before 60 years or before superannuation | ₹3 lakh |
| 3. Exit by individuals joining on or after 60 years | ₹12 lakh |
| 4. Upon death | ₹15 lakh |
| 5. Death of individual who joined on or after 60 years | ₹15 lakh |
When the APW is ₹50 lakh
| Scenario | Maximum lump sum withdrawal allowed |
|---|---|
| 1. After ≥15 years, or on attaining 60 years, or on superannuation, or physical incapacitation | ₹40 lakh |
| 2. Voluntary exit before 15 years or before 60 years or before superannuation | ₹10 lakh |
| 3. Exit by individuals joining on or after 60 years | ₹40 lakh |
| 4. Upon death | ₹50 lakh |
| 5. Death of individual who joined on or after 60 years | ₹50 lakh |
When the APW is ₹1 crore
| Scenario | Maximum lump sum withdrawal allowed |
|---|---|
| 1. After ≥15 years, or on attaining 60 years, or on superannuation, or physical incapacitation | ₹80 lakh |
| 2. Voluntary exit before 15 years or before 60 years or before superannuation | ₹20 lakh |
| 3. Exit by individuals joining on or after 60 years | ₹80 lakh |
| 4. Upon death | ₹1 crore |
| 5. Death of individual who joined on or after 60 years | ₹1 crore |
Annuity plans are sold by PFRDA-approved life insurers and they help address the periodic cash-flow needs of subscribers in retirement. Till now, many investors have seen the mandatory annuity purchase with 40% of the APW as an unnecessary restriction on the freedom to use one's own money.
However, the new rules mean investors will have more freedom to plan what they want to do with their savings under NPS.
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