NPS allows partial withdrawals for specific reasons

The National Pension System (NPS) requires a long-term commitment, but it allows some flexibility for withdrawals. Subscribers can take out up to 25% of their contributions after three years under certain conditions. This can help if you need funds for emergencies, education, or starting a business. Withdrawals can be made up to three times before you leave the NPS. However, only the money you contributed is available for withdrawal. Funds from your employer and any investment gains remain locked. For example, if you contributed 4 lakh and your employer matched that, you could only withdraw up to 1 lakh, which is 25% of your personal contribution. Specific reasons are allowed for these withdrawals. They include funding a child's higher education, buying or building a house, medical expenses for serious illnesses, and starting a business. You can use the same reason for multiple withdrawals, as long as they stay within the limit. If you have an NPS Tier-II account, you can withdraw funds anytime without restrictions. However, Tier-II contributions and gains do not get tax benefits. In case of the subscriber's death, the entire amount can be accessed by the nominee or legal heir. To withdraw funds, log in to your NPS account and navigate to the withdrawal section. You will need to verify your details, but no extra documents are required—just a statement declaring why you're withdrawing. You can also choose to go through PFRDA-appointed points for help. If you think about leaving the NPS before age 60, be aware that there are restrictions. You can only exit after five years, and you’ll be limited to withdrawing 20% of your funds as a lump sum. The rest must buy an annuity to provide income. However, if your total is less than 2.5 lakh, you can withdraw it all. Understanding these rules helps you manage your NPS funds wisely.