National Pension System | National Pension System subscribers can soon draw their lifetime contribution. To this extent changes are coming in the Withdrawal Rules.
The government has decided to provide relief to National Pension System subscribers. Now if the subscriber’s pension corpus fund is up to five lakh rupees, the entire amount can be withdrawn at once. Until now, beneficiaries have been able to withdraw up to Rs 2 lakh from their NPS account. Once this limit is exceeded, pensioners can withdraw only 60 per cent of their contribution. That is, as per the existing rule, at least 40 per cent of the donation must be kept in the annuities approved by the government. The Center has relaxed these rules.
This gives subscribers an option. This allows the subscriber to set their own allotment for different asset clauses. The National Pension System offers two types of accounts. They are Tier-1, Tier-2 accounts. It offers both types of accounts, including government bonds, the equity market, and corporate loans. This includes a Tier-1 NPS account … which is definitely a pension account. The Tier-2 account is also known as the investment account. This is a voluntary savings account linked to a Permanent Retirement Account Number (PRAN).
Currently, investors have the option to open a Zero Balance Account at SBI and withdraw money in advance only after the completion of three years. In this case, however, the total contribution of the withdrawal subscriber should not exceed 25 per cent. Withdrawals here are permitted for a specified reason. This permit is for children with higher education, for their marriage, for the purchase of a house, or for the construction of a house (under specified conditions), for the treatment of serious illnesses.
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