Outlook Money
NPS is a government-backed retirement savings scheme offering monthly pensions and lump sums at retirement.
After reaching the age of 60, the subscriber can withdraw up to 60 per cent of the accumulated NPS funds in a lump-sum and the rest must be invested in an annuity plan for monthly pensions.
If subscriber dies, the nominee will receive the accumulated NPS corpus, provided the subscriber selects a nominee.
In case of premature exit, the subscriber is allowed to withdraw only 20 per cent of the funds and the rest must be invested in annuity.
The SLW plan allows the subscriber to withdraw the funds at a pre-determined frequency or age. The subscriber can choose to receive the money in monthly, quarterly, half-yearly or yearly modes.
Compiled By Himani Verma