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NPS Gets A Major Overhaul In 2025: What The New Rules Mean For Your Retirement Money?
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In 2025, a sweeping set of reforms by the Pension Fund Regulatory and Development Authority (PFRDA) has been announced to make NPS more attractive, flexible, and investor-friendly.
Non-government subscribers with an NPS corpus of more than Rs 12 lakh can now withdraw up to 80% of their savings as a lump sum, with only 20% mandatorily allocated to an annuity.
The National Pension System (NPS) has been largely used for tax savings. In 2025, a sweeping set of reforms by the Pension Fund Regulatory and Development Authority (PFRDA) has been announced to make NPS more attractive, flexible, and investor-friendly.
Here’s a simple breakdown of what has changed.
Higher lump-sum withdrawals at retirement
One of the most significant changes is the higher cash withdrawal limit. Non-government subscribers with an NPS corpus of more than Rs 12 lakh can now withdraw up to 80% of their savings as a lump sum, with only 20% mandatorily allocated to an annuity. Earlier, 40% had to be annuitised, a provision that often reduced post-retirement returns.
New withdrawal slabs for smaller NPS corpus
PFRDA has introduced a new withdrawal framework based on corpus size, offering greater flexibility to investors with lower balances.
Subscribers with a corpus below Rs 8 lakh can withdraw 100% of the amount as a lump sum. Those with a corpus between Rs 8 lakh and Rs 12 lakh can choose between phased withdrawals using Systematic Unit Redemption (SUR), partial lump-sum withdrawal combined with annuity purchase, or higher lump-sum withdrawal depending on subscriber category.
Systematic Unit Redemption (SUR) introduced
A key structural reform is the introduction of Systematic Unit Redemption, which allows subscribers to withdraw their NPS corpus gradually over a minimum period of six years. This enables a steady post-retirement income stream without locking funds into an annuity.
Investment age limit extended to 85 years
Subscribers can now remain invested in NPS until 85 years of age, up from the earlier limit of 75. This benefits investors who want to delay withdrawals or continue compounding their retirement corpus beyond the traditional retirement age of 60.
More flexibility in partial withdrawals
Before turning 60, NPS subscribers can now make up to four partial withdrawals, compared with three earlier, with a minimum gap of four years. Withdrawals of up to 25% of own contributions are allowed for specified purposes such as education, marriage, home purchase and medical emergencies.
After 60, subscribers who continue investing can make partial withdrawals with a minimum gap of three years between transactions.
Multiple schemes under one NPS account
Non-government subscribers can now hold multiple schemes under a single PRAN, allowing them to diversify across fund managers and investment strategies without opening separate accounts.
100% equity option for long-term investors
From October 2025, private, corporate and self-employed subscribers can invest up to 100% in equities under the Multiple Scheme Framework, up from the earlier cap of 75%. This option is designed for younger investors with long time horizons who can tolerate higher volatility.
Switching between MSF schemes, however, is restricted for the first 15 years or until age 60.
NPS can now invest in gold, REITs and IPOs
NPS equity schemes are now permitted to invest in gold and silver ETFs, REITs, equity AIFs and IPOs. The combined exposure to these assets is capped at 5% of the equity allocation, offering diversification without excessive risk.
Scheme A discontinued: What subscribers must do
Subscribers invested in Scheme A, which focused on alternative assets such as infrastructure, must switch to Scheme C or Scheme E by December 25, 2025. The scheme is being phased out due to low participation and liquidity challenges.
Other investor-friendly changes
Several additional reforms have further improved NPS attractiveness. These include removal of the five-year lock-in for non-government subscribers, permission to pledge NPS corpus to obtain loans (up to 25% of own contributions), and enhanced tax benefits for NPS Vatsalya contributions under Section 80CCD(1B).
Clearer exit and family protection rules
Exit rules have also been streamlined. Subscribers who renounce Indian citizenship can withdraw their entire corpus. In the event of death, nominees or legal heirs receive 100% of the corpus if no annuity has been purchased. Interim relief provisions have also been introduced for cases where a subscriber is legally declared missing.
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December 19, 2025, 16:15 IST
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Indian industry has welcomed lower tariffs, but experts caution against celebration until details are clearer.
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Business
MCX Silver Jumps 6% To Hit Upper Circuit After 46% Crash; Can India–US Deal Spark A Sustained Rally?
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Silver prices staged a sharp rebound on Tuesday after an intense phase of liquidation that followed the abrupt unwinding of a record-setting rally
Silver Rates Surge Today
Silver Rates Today: Silver prices staged a sharp rebound on Tuesday after an intense phase of liquidation that followed the abrupt unwinding of a record-setting rally. The earlier sell-off had pulled prices down more than 46% from their peak in just three sessions, highlighting the extreme volatility in the precious metals space. Gold prices also recovered alongside silver.
On the MCX, silver hit the 6% upper circuit at Rs 2,50,436 per kg on February 3, while MCX gold climbed 3% to Rs 1,48,310 per 10 grams.
A key macro catalyst emerged after US President Donald Trump announced a trade agreement with India. The deal lowers US tariffs on Indian goods to 18% from 50% in exchange for India halting Russian oil purchases and easing certain trade barriers. The development added a fresh geopolitical layer to already jittery commodity markets.
Gold mirrored silver’s recovery in global trade. Spot gold rose as much as 4.2% to move above $4,855 an ounce after sliding 4.8% in the previous session. That decline had extended Friday’s slump, the steepest in over a decade.
Earlier, on January 30, spot gold had tumbled nearly 10% in its sharpest single-day fall since 1983, dragging prices back below the $5,000-an-ounce mark that had been crossed only days before and erasing a sizable portion of the year’s gains.
The rebound extended beyond gold and silver. Spot platinum advanced 3% to $2,183.64 an ounce after touching a record $2,918.80 on January 26, while palladium rose 2.7% to $1,765.75, joining the broader recovery across precious metals.
What drove the rebound after the crash?
Domestic sentiment got a lift from the India–US trade deal, while investors also reassessed geopolitical risks, currency movements and the outlook for US monetary leadership. Strong buying from Chinese retail investors ahead of the Lunar New Year further supported demand, although China’s markets are set to shut for over a week from February 16, temporarily sidelining a key source of consumption.
Traders are also watching developments involving Iran after Trump signalled that talks on a potential new nuclear agreement could begin soon. Any diplomatic progress could reduce gold’s safe-haven appeal and cap gains.
The earlier sell-off in bullion was initially triggered by Trump’s nomination of Kevin Warsh as the next Federal Reserve chair, which strengthened the US dollar and pressured metals. The slide intensified after CME Group raised margin requirements for precious metals futures, forcing leveraged traders to unwind positions quickly. A stronger dollar combined with higher trading costs led to a sharp liquidity squeeze, accelerating the fall.
Will the rally sustain?
Hareesh V, Head of Commodity Research at Geojit Investments, said longer-term drivers such as geopolitical tensions, central bank buying and macro uncertainty remain supportive for precious metals.
He noted that the previous correction was magnified by extremely overbought conditions after gold and silver had surged to record highs, with silver rallying more than 60% in a month and gold over 20%. Profit-booking snowballed into panic selling as liquidity thinned and volatility spiked.
“The violent drop was more of a technical correction than a deterioration in core fundamentals,” he said, suggesting that the broader structural support for the metals remains intact.
February 03, 2026, 11:07 IST
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Gold prices are no longer being watched only at home but across global markets, as sudden and unexpected swings keep investors on edge. Addressing the volatility, Finance Minister Nirmala Sitharaman stated that a deepening uncertainty in international markets is driving the fluctuations. Speaking to reporters on Monday, she pointed to rising anxiety among investors in global commodity trade, explaining that unstable conditions worldwide have eroded confidence in individual currencies. As a result, many investors are turning to gold as a haven, a shift she said is naturally fuelling the sharp ups and downs in gold prices.
According to data from the Multi-Commodity Exchange (MCX), gold prices slipped slightly on Monday evening. Compared to the previous session’s closing rate, the price of ten grams of gold declined by around Rs 280, marking a fall of less than 1%. Market experts note that daily price movements are largely driven by international trends. Due to this volatility, many buyers are adopting a wait-and-watch approach.
Over the past five days, gold prices in India’s spot market have fallen sharply. On January 29, the price of ten grams of gold stood above Rs 1.7 lakh, but it has now dropped to nearly Rs 1.4 lakh. This represents a decline of over 13% in just five days, a shift that has caught regular buyers by surprise. For investors hoping for substantial gains, the sudden drop has served as a cautionary signal.
Responding to questions on the Union Budget, the Finance Minister said that investment remains the primary driver of sustained economic growth. She noted that the government is prioritising sectors that generate employment and is strengthening the economy through reforms aimed at long-term outcomes. While increasing public investment, she said, the government continues to follow disciplined fiscal policies. The overarching goal, she added, is to ensure that growth is inclusive and that every citizen becomes a stakeholder in the nation’s development.
Nirmala Sitharaman expressed confidence that India is steadily progressing towards becoming a developed nation. She stated that as a growing economy, India must play a significant role in global trade and is actively working to boost exports by integrating with international markets. She also clarified that efforts are underway to make domestic markets resilient enough to compete globally.
She further explained the decision to raise the Securities Transaction Tax (STT) in the Futures and Options segment. According to her, the move is aimed at discouraging uninformed, gambling-like participation in derivative trading. The government, she said, has taken these steps to protect small and retail investors from potential losses and to maintain overall market stability.
The Finance Minister also revealed that the disinvestment process of public sector enterprises is progressing swiftly. She said this would encourage greater public participation in government-owned companies and allow more efficient use of financial resources to fund development projects. Through transparent policies, the central government aims to maximise the value of public assets, a move she believes will yield long-term financial benefits for the country.
She concluded by stating that global economic conditions are clearly influencing domestic markets, and while price fluctuations are inevitable, the government’s reforms will help bring stability. She advised investors to avoid hasty decisions and to carefully assess market conditions before acting, adding that every reform undertaken to strengthen the economy is a step towards a developed India.
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MCX Silver Jumps 6% To Hit Upper Circuit After 46% Crash; Can India–US Deal Spark A Sustained Rally?
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