PFRDA has exempted subscribers having maturity corpus of up Rs.5 lakh from buying an annuity. Such subscribers can now withdraw the entire amount. So far, such a limit was Rs.2 lakh.
With this, subscribers having Rs.5 lakh or more will have annuitize 40% of the total retirement corpus.
The pension fund regulator has further clarified that the limit would be applicable to nominees claiming NPS corpus after the death of subscribers.
Further, the pension fund regulator has also increased the premature withdrawal limit to Rs.2.50 lakh from Rs.1 lakh.
In addition, PFRDA has increased the maximum age to become an NPS subscriber from 65 years to 70 years. The exit age limit has also been extended to 75 years.
