After the latest changes, NPS investors will now have the option to withdraw 60% of their retirement corpus either as a lump sum at once or they can get paid in a phased manner through the systematic lump-sum withdrawal facility post-retirement. If you are planning to opt for a systematic lump-sum withdrawal of your NPS corpus at the time of retirement, you must know how it works and will be taxed. Read on to find out.
National Pension System: SLW is a method of withdrawing the lump sum NPS corpus after purchasing an annuity, providing retirees with periodic cash flows and enhancing their post-retirement income
For its pensioners, the PFRDA has suggested a Systematic Lump Sum Withdrawal (SLW) facility. This permits NPS members to take withdrawals of up to 60% of their entire pension fund on a monthly, quarterly, half-yearly, or annual basis that is until they reach the age of 75.
Retirement planning: NPS has emerged as one of the most popular tools for retirement planning and investment. Your returns from NPS will decide how much corpus you can accumulate. Let us say you have just turned 40. You have 20 years to accumulate a lump sum in NPS. If you want to earn a Rs 2 lakh pension per month from your NPS investment, here is how much contribution you must make now.