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NPS Update: Full withdrawal allowed up to Rs 8 lakh corpus — Key rules explained

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NPS Update: Full withdrawal allowed up to Rs 8 lakh corpus — Key rules explained


New Delhi: Subscribers of the National Pension System (NPS) can withdraw their entire retirement corpus only under specific conditions, mainly depending on the total accumulated amount and the timing of exit.

Under the latest withdrawal rules, 100 percent lump-sum withdrawal is allowed at retirement (age 60 or later) if the total NPS corpus does not exceed Rs 8 lakh. This limit was recently increased from Rs 5 lakh, giving small-corpus subscribers greater flexibility.

If the accumulated pension wealth is between Rs 8 lakh and Rs 12 lakh, subscribers can withdraw up to Rs 6 lakh as a lump sum, while the remaining balance must be withdrawn gradually through options such as Systematic Unit Redemption (SUR) or used to purchase an annuity.

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For corpus amounts above Rs 12 lakh, subscribers can withdraw up to 80 percent as a lump sum, while the remaining 20 percent must be invested in an annuity plan to ensure a regular pension income after retirement.

These updated rules were introduced by the Pension Fund Regulatory and Development Authority (PFRDA) as part of broader reforms to make the retirement savings scheme more flexible and investor-friendly. The changes also allow subscribers to remain invested in the NPS until the age of 85, extending the earlier limit.

In addition to retirement withdrawals, partial withdrawals of up to 25 percent of a subscriber’s own contributions are permitted during the account’s tenure for specific needs, subject to certain conditions.

Overall, the revised withdrawal framework aims to balance liquidity for retirees with the need to maintain a steady pension income, ensuring that NPS continues to function as a long-term retirement savings instrument.



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Why essentials like eggs, bread and milk cost so much more now

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Why essentials like eggs, bread and milk cost so much more now



Six supermarket brand eggs cost £1 in 2022. How much are they now, why have they gone up, and is anyone profiteering?



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Spirit’s collapse, high fuel prices test limits of summer vacation spending

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Spirit’s collapse, high fuel prices test limits of summer vacation spending


Travelers walk through the terminal at Ronald Reagan Washington National Airport on May 1, 2026.

Leslie Josephs | CNBC

Higher fuel prices are testing how badly consumers want to travel this summer, whether flying or driving.

Airfare hasn’t been this high since May 2022, when airlines stumbled out of the pandemic with aircraft and employee shortages to face hordes of consumers ready for “revenge travel.” Gasoline is above $4 a gallon and could get closer to $5 a gallon this summer, AAA warned this week.

Jet fuel prices doubled in the span of less than three months this year after the U.S. and Israel attacked Iran, kicking off a conflict that has left a key shipping channel effectively closed.

Domestic round-trip airfares in April averaged $623, the highest in nearly four years, according to data from the Airlines Reporting Corporation, which tracks travel agency ticket sales. Jet fuel is the second-biggest expense for airlines after labor, and carriers say they are increasingly passing those costs along to customers.

Separately, airlines are also trimming their growth plans because of higher fuel costs. Even if a route isn’t cut, fewer flights on certain routes means that customers will have fewer seats to choose from and, with demand robust, that could drive up prices even more.

Spirit Airlines, the most famous budget carrier in the U.S., shut down earlier this month, and partially blamed jet fuel prices for its failure to emerge from near back-to-back bankruptcies. It was the biggest U.S. airline collapse in decades. Other airlines swooped in to snatch up those customers in the aftermath, but the carrier’s demise removes a main purveyor of low fares.

The fuel spikes have set the stage for higher fares and more expensive gas station visits this summer. The start of the peak travel season Memorial Day weekend will be a taste of how much travelers will shell out to fly while everything from groceries to clothing has become more expensive this year.

The Transportation Security Administration said it expects to screen 18.3 million people between Thursday and next Wednesday, compared with the 18.5 million it saw over a similar period last year.

Read more about jet fuel’s impact on travel

Lackluster road trip growth

Road trips won’t be a bargain either. AAA this week forecast 39.1 million people will drive at least 50 miles between Thursday and Monday, up just 0.1% compared with last Memorial Day weekend. That was the least growth in a decade, AAA told CNBC.

Gasoline price site GasBuddy forecast this week that prices across the U.S. will average $4.48 on Memorial Day, up from $3.14 last year, and that prices could average $4.80 through Labor Day “if the Strait of Hormuz remains closed for a significant portion of the summer.”

A customer fills his vehicle with fuel at a gas station in Miami, April 13, 2026.

Joe Raedle | Getty Images

Still flying

Leisure travel intentions in the U.S. were slightly lower in March — at 82.8% compared with 83.1% the same month a year earlier — though they are still relatively high, UBS said in a note Monday.

“We believe the year-over-year moderation in travel intentions this year was likely due to higher jet fuel and other geopolitical concerns,” UBS airline analyst Atul Maheswari wrote. He added that the intent to travel is near the highest points in the past nine years.

So far, airline executives said, customers are still booking, and executives are optimistic about the summer travel season. They’ve also said they’re expecting a boost from the FIFA World Cup, which will be held in June and July in the U.S., Canada and Mexico, and from major concerts such as Harry Styles’ residencies in Amsterdam and London this summer.

United Airlines said it expects to carry 53 million travelers between June and August, up 3 million people from last year. American Airlines has forecast 75 million customers between May 21 and Sept. 8, after Labor Day, topping its previous record, in 2019.

Refueling trucks at LaGuardia Airport in New York, April 23, 2026.

Zhang Fengguo | Xinhua News Agency | Getty Images

‘What are you waiting for?’

Airlines have been pruning their schedules and axing unprofitable or less profitable routes but have been eager to fill in the gaps after Spirit’s collapse.

Travelers can still find deals if they’re flexible, said Kyle Potter, who runs the Thrifty Traveler website. He recommended using tools such as the “Explorer” tool in Google Flights that allows users to look up destinations by the length of trip and by month in a map view.

He also suggested flyers consider traveling on a Tuesday or Wednesday, when fares and traffic are often lower.

“That, in many cases, can save you hundreds of dollars per ticket, and multiply that by a family of four,” he said.

He had a simple message for travelers sitting on piles of frequent flyer miles.

“Now is the time to use your miles or your credit card points or both,” he said, warning that miles can end up devalued. “What are you waiting for? I think a lot of people hoard their miles because they want to go to to Europe in 2027.”

— CNBC’s Contessa Brewer contributed to this report.

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‘Potential to diversify’: US state secretary Rubio pushes for US energy supplies to India in meeting with PM Modi

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‘Potential to diversify’: US state secretary Rubio pushes for US energy supplies to India in meeting with PM Modi


US Secretary of State Marco Rubio emphasised Washington’s intent to prevent geopolitical disruptions from distorting global energy markets, as tensions linked to the Iran conflict continue to affect oil supply routes and pricing dynamics.During discussions on energy security, Rubio’s office, quoted by Reuters, stressed that the US sees energy exports as a key instrument in strengthening partnerships, particularly with India, which remains a major crude importer navigating supply diversification challenges.In that context, Rubio said, “US energy products have the potential to diversify India’s energy supply.” He also emphasized a broader US position on global energy stability amid the Iran-related crisis, with his office adding, “the United States will not let Iran hold the global energy market hostage.”The remarks come as the Iran war has disrupted global energy flows and contributed to volatility in oil markets, complicating efforts by Washington to reduce India’s reliance on Russian crude imports. The instability has added a new layer of complexity to US energy diplomacy in Asia, where supply security has become increasingly central to strategic engagement.Officials indicated that the ripple effects of the conflict have not only impacted global pricing but also slowed parts of Washington’s broader effort to realign energy trade flows away from sanctioned or high-risk suppliers.Rubio’s comments were made alongside broader engagement in New Delhi, where he met Indian leadership to discuss energy cooperation, trade expansion under the “Mission 500” framework, and Indo-Pacific strategic alignment through the Quad.In earlier public remarks, Rubio had also signalled a more aggressive US commercial energy posture toward India, saying, “We want to sell them as much energy as they’ll buy.”Separately, he reiterated India’s importance in Washington’s strategic outlook, describing it as a key partner in shaping long-term regional stability while the US continues to manage the economic and geopolitical spillovers of the Iran conflict.



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