NPS EXIT AND WITHDRAWAL
During normal exit/superannuation from NPS, the subscriber is mandatorily required to purchase a life annuity from the empanelled life insurance company. from Ppart of their accumulated retirement corpus is used to buy annuity and withdraw the remaining portion of the corpus as a lump sum, as an optional choice. The withdrawal and Exit under NPS must be in accordance with Exit and withdrawals under NPS (PFRDA) Regulation, 2015.
Max Life Insurance has been empanelled with by PFRDA to act as one of the Annuity Service Providers for the NPS. An annuity is an insurance product dedicated to retirement planning wherein you can invest a lump sum amount to generate steady income immediately post-retirement.
Things to consider while choosing an annuity plan
Choose the Right Amount to Invest in Annuities
Your financial needs – immediate or future
Your investment portfolio
Your long-term goals
Inflation Rate
Your current savings
Higher the accumulated corpus used to purchase Annuity, the higher will be the monthly pension that is received.
Select the Right Type of Annuity Plans
Single life immediate annuity for life without death benefit
You will get a fixed guaranteed income (pension) throughout life, but no death benefit
Joint life immediate annuity for life without death benefit
Pension is paid if one of the annuitants is alive via the chosen mode but no death benefit
Joint life immediate annuity for life with death benefit
You or the other annuitant will get a fixed income if one of you are alive, along with death benefit given to the nominee(s)
Single life immediate annuity for life with death benefit
Pension is paid throughout your life while the nominee also gets a death benefit
Joint life immediate annuity for life with death benefit
You or the other annuitant will get a fixed income if one of you are alive, along with death benefit given to the nominee(s)
Opt for a Suitable Frequency Mode
Depending on the annuity plan you choose, you can further select a pay-out frequency. Most of the renowned annuity plans for NPS subscribers offer four pay-out options, i.e. annually, half-yearly, quarterly, or monthly. *As per PFRDA withdrawal guidelines, in case of government sector subscribers, the Annuity payable shall be monthly only.
Buying the Right Annuity Plan
Being an NPS subscriber, buying the right annuity plan is a crucial step towards retirement planning. Through Max Life Annuity plans, you can start investing for your retirement plans and ensure a regular lifetime income stream.
With this retirement plan, you also get the option to plan an early retirement by locking higher annuity rates at present. As a result, you can enjoy risk-free life-long payment to support your financial needs. Check the premium using its online calculator.