Lesson 47 of 53 · Annuities and the NPS exit · 4 min read · Reviewed 29 Oct 2026
Since Dec 2025, non-government subscribers can take up to 80% as a lump sum and use at least 20% for an annuity. A corpus up to ₹8 lakh can be withdrawn in full. Government employees still take up to 60% and annuitise at least 40%. Annuity income is taxed at your slab rate in the year you receive it.
At normal exit, up to 80% of an NPS corpus can come out as a lump sum; at least 20% buys an annuity. It used to be 60:40.
A corpus of ₹8 lakh or less can be taken in full. Between ₹8 lakh and ₹12 lakh, up to ₹6 lakh comes as a lump sum.
Annuity payments are income, taxed at your slab rate each year.
Key idea: Every life insurer offers Saral Pension, a standard annuity that returns the purchase price at death, for buyers aged 40 to 80.
Try the short quiz on this page to check what stuck.
Up to 20% as a lump sum and at least 80% into an annuity, unless the corpus is ₹5 lakh or less.
Up to 85.
₹1,000 a month or ₹12,000 a year.
For learning only, not investment advice. Built in India by a team that tracks its own money on Reva.