The National Pension System (NPS) helps you accumulate a retirement nest egg, but the fact that it allows you to put only 50% of your money in equities has been a serious shortcoming. Another feature of NPS that financial planners have always flagged is limited partial withdrawal facility. Not anymore.
At a recent board meeting, the Pension Fund Regulatory and Development Authority (PFRDA) approved increasing equity allocation from 50% to 75% for private sector NPS. Further, the board has decided that subscribers will also be allowed to make partial withdrawals for higher education or for acquiring professional and technical qualifications, or for setting up a new business. This adds to the list of reasons based on which you can make partial withdrawals.