India, Jan. 20 -- The National Pension System is a good retirement product that has become better over the years. However, some people still refrained from investing due to low liquidity and flexibility. The money remained locked till retirement, and after that, the subscriber had to compulsory invest a minimum of 40% of the accumulated amount in an annuity. However, in December 2025, the PFRDA announced some sweeping changes that has made NPS a far more compelling investment product for retirement. In this article, we will examine the NPS withdrawal and exit regulations and how they have made NPS a better investment product.

On 12 December 2025, the PFRDA notified the Pension Fund Regulatory and Development Authority (Exits and Withdraw...