New Delhi, Dec. 23 -- Finally, a long-standing demand-to reduce the portion that must be annuitized under the National Pension System (NPS)-has been addressed.

The Pension Fund Regulatory and Development Authority (PFRDA) has recently announced changes to the rules governing normal exit from NPS. Subscribers can now withdraw 100% of their accumulated pension wealth if the corpus is up to Rs.8 lakh, and up to 80% as a lump sum (with the remaining 20% annuitized) if the corpus exceeds Rs.12 lakh.

Crucially, the minimum lock-in period has been reduced to 15 years or until the subscriber attains the age of 60, whichever is earlier.

It has been an eventful year for NPS. Reforms include the introduction of the multiple scheme framework and t...