NPS withdrawal norms: Greater fund access comes with onus to manage risk
Last Update Date: 06-10-2026
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar cautioned that premature NPS exits still require most of the corpus to be annuitised, so that route should be used sparingly. He said systematic unit redemption is meant for investors who can take more risk, carries market risk, and is not for risk-averse retirees.
More of Abhishek's views on retirement
The article explains recent NPS changes: a larger lump-sum withdrawal at 60, a lower mandatory annuity share, the option to stay invested until 85 and removal of the five-year lock-in. It weighs the added flexibility against the risks of mismanaging savings, inflation and longevity, and compares systematic unit redemption with annuities.
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NPS withdrawal norms: Greater fund access comes with onus to manage risk