NPS Swavalamban Subscribers Can Now Make Premature Exit With Entire Accumulated Pension Corpus: Check How

For Indian residents who work in the unorganized sector and are between the ages of 18 and 60, NPS - Swavalamban fund provides a monthly income after they reach retirement age. NPS - Swavalamban generates returns by investing a part of contributions in the equity market. Under NPS - Swavalamban, up to 55 percent of the capital is allocated in government securities and up to 40 percent in corporate bonds. At the age of 60, the NPS - Swavalamban account can be closed.

Swavalamban Subscribers with accumulated pension corpus of less than Rs 1 lakh with the exception of the government contribution and associated returns and who are not eligible to transfer to Atal Pension Yojana (APY) can now prefer to prematurely exit the scheme and receive a full lump sum payment of their accumulated pension wealth under the new rules. It's important to remember that subscribers of the NPS Swavalamban scheme between the ages of 18 and 40 were offered the alternative of migrating to the Atal Pension Yojana, which guarantees a minimum pension to members.

Swavalamban subscribers over the age of 40 who are unable to migrate to APY can stay in the Swavalamban scheme until they reach the retirement point of 60. So let's now talk about the new rules for premature exit of NPS Lite Swavalamban subscribers, according to PFRDA.

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