1 October 2025: The National Pension System (NPS) was started in 2009 for non-government employees. In the last 16 years, the scheme has gradually become a reliable retirement option. The government has been changing it from time to time so that it can reach more people and can be useful according to their needs. Today NPS has become a popular retirement plan due to tax exemption, market -related investment and flexible options.
There have been many important changes in NPS in the last 10 years. In this, the rules of investment, tax provisions and withdrawal rules have been constantly updated. Recently the government started the Unified Pension Scheme (UPS), but it is only for the central government employees. Now, from 1 October 2025, major changes are going to be implemented again in NPS.
Changes to be implemented from 1 October 2025
1. Investment option in 100% equity
Till now the NPS had a limit to investment in equity (stock market). But from 1 October 2025, you will be able to invest your entire amount (100%) in equity if you want from 1 October 2025. This will give them a chance to get more returns. However, there will also be a risk as the stock market is quite ups and downs.
2. Multiple Scheme Framework (MSF)
Till now, investors could run only one scheme on a Pran Permanent Retirement Account Number. But after the new rules, investors will be able to run the schemes of different Cra Central Record Kepping Agency under the same Pran. The advantage of this will be that investors will get more options and flexibility.
Pension Fund Regulatory and Development Authority (PFRDA) has issued draft rules, which have been asked to make withdrawal and exit easy.
Exit facility after 15 years: Till now, the option of getting out of NPS was mostly retirement at the age of 60 years. Under the new proposal, non-government subscribers will be able to exit if you want 15 years. This will provide relief to investors who need money in between.
Lump even and partial withdrawal easy: It has also been proposed to increase the limit of lump sum withdrawal (Lump Sam) and make partial withdrawal easier. For example, it will be easy to withdraw money for needs like home building, treatment, children’s education.