Yes, you can subscribe to the National Pension System (NPS) after the age of 60. The maximum age to subscribe is 85. You can continue investing in NPS up to the age of 85, after which you must exit.
Exit options
There are three ways to exit NPS:
Normal exit (superannuation)
After attaining the age of 60, or after completing 15 years of investment in NPS, you can exit NPS.
The withdrawal rules differ based on your corpus and the sector you fall under:
- If your corpus is ₹8 lakh or below (All Citizen and Corporate sectors), you can withdraw 100% as a lump sum, or withdraw up to 80% as a lump sum and invest at least 20% in an annuity.
- If your corpus is above ₹8 lakh (All Citizen and Corporate sectors), you can withdraw up to 80% as a lump sum and must invest at least 20% in an annuity.
- If your corpus is above ₹8 lakh (Government sector), you can withdraw up to 60% as a lump sum and must invest at least 40% in an annuity.
Premature exit
If you exit NPS before completing the required tenure, there is no minimum lock-in period.
The withdrawal rules for premature exit are:
- If your corpus is ₹5 lakh or below (All Citizen, Government, and Corporate sectors), you can withdraw 100% as a lump sum, or withdraw up to 20% as a lump sum and invest at least 80% in an annuity.
- If your corpus is above ₹5 lakh (All Citizen, Government, and Corporate sectors), you can withdraw up to 20% as a lump sum and must invest at least 80% in an annuity.
If you joined NPS after the age of 60 (All Citizen Model)
If you joined NPS after turning 60, there is no vesting period. You can exit NPS any time after your Permanent Retirement Account Number (PRAN) is generated.
The withdrawal rules are:
- If your corpus is ₹12 lakh or below, you can withdraw 100% as a lump sum, or withdraw up to 80% as a lump sum and invest at least 20% in an annuity.
- If your corpus is above ₹12 lakh, you can withdraw up to 80% as a lump sum and must invest at least 20% in an annuity.
Exit upon death
If you pass away, your NPS investment will be disbursed to your nominee or legal heir as a lump sum. Alternatively, your nominee can choose to receive it as an annuity.
Funds will be credited to the linked bank account within T+4 days by the Central Recordkeeping Agency (CRA). No charges apply on exits and withdrawals.
Partial withdrawal
You can make partial withdrawals from your NPS account, subject to the following conditions:
- Vesting period: You must wait 3 years from your PRAN generation date before making a partial withdrawal. If you joined NPS after the age of 60, there is no vesting period.
- Number of withdrawals: You can make up to 4 partial withdrawals if you joined before 60. If you joined after 60, you can make any number of withdrawals.
- Interval between withdrawals: You must wait at least 4 years between withdrawals if you joined before 60, and at least 3 years if you joined after 60.
- Maximum amount: You can withdraw up to 25% of your own contributions in either case.