Now, investments in the National Pension System can be continued until the age of 85. Previously, this limit was 75. This change will allow older investors to invest for a longer period and withdraw funds as needed.
Several major changes were announced in 2025 for investors in the National Pension System. Pension fund regulator PFRDA made significant amendments to the NPS rules, aiming to provide subscribers with greater flexibility, more cash at retirement, and better financial planning options. These new rules will apply to both government and private sector employees. So, let's now explain the 10 changes to the NPS rules.
Now, investments in the National Pension System can be continued until the age of 85. Previously, this limit was 75. This change will allow older investors to invest for a longer period and withdraw funds as needed.
Under the new rules, private sector employees will now be required to invest only 20 percent of their total savings in annuity. Previously, if the fund exceeded ₹5 lakh, the annuity amount was 40 percent. This will result in more cash at retirement.
NPS is no longer limited to pensions. Under the new rules, subscribers can withdraw up to 80% of their deposits in one lump sum at the time of retirement, making it easier to meet their financial needs.
Now, up to 25% of your NPS deposit can be collateralized to obtain a loan. This facility will be helpful for medical emergencies or home purchase needs.
The maximum investment age limit of 85 years will give investors the opportunity to stay invested in equities for a longer period and grow their funds over a longer period.
Under the new rules, up to 75 percent of the PF balance can be withdrawn one month after leaving the job. The remaining 25 percent must be kept in the account for at least one year. However, the full amount can be withdrawn upon retirement, permanent disability, or relocation abroad.
Following the changes, health insurance can now be purchased even after the age of 65. Insurance companies cannot refuse to offer policies based solely on age. Additionally, it has been made mandatory to have a special policy for senior citizens.
After the loan is fully repaid, the bank must return the original property documents within seven working days. Any delay will result in a penalty of ₹5,000 per day.
In the new tax system, the standard deduction has been increased to Rs 75 thousand, and due to the change in the tax slab, the tax liability on income up to Rs 12 lakh becomes zero.
Now, unclaimed money lying with banks and other institutions can be easily searched and claimed through a digital portal. This money can be withdrawn with interest, and there is no time lim
PC:ABPNews
