{"id":15794,"date":"2025-09-27T04:14:52","date_gmt":"2025-09-27T04:14:52","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/27\/100-equity-option-multiple-schemes-nps-set-for-a-makeover-key-changes-you-should-know-savings-and-investments-news\/"},"modified":"2025-09-27T04:14:52","modified_gmt":"2025-09-27T04:14:52","slug":"100-equity-option-multiple-schemes-nps-set-for-a-makeover-key-changes-you-should-know-savings-and-investments-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/27\/100-equity-option-multiple-schemes-nps-set-for-a-makeover-key-changes-you-should-know-savings-and-investments-news\/","title":{"rendered":"100% Equity Option, Multiple Schemes: NPS Set For A Makeover; Key Changes You Should Know | Savings and Investments News"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div id=\"story-9599481\">\n<p><span class=\"jsx-395e0e0beb19cb6e jsx-4143937483\">Last Updated:<\/span><time class=\"jsx-395e0e0beb19cb6e jsx-4143937483\">September 27, 2025, 09:14 IST<\/time><\/p>\n<h2 id=\"asubttl-9599481\" class=\"jsx-c9f81425ec968c48 jsx-977600415 asubttl-schema\">PFRDA revamping National Pension System with flexible schemes, 100% equity option, easier exits, higher withdrawal limits, and extended joining age.<\/h2>\n<div class=\"jsx-cc1b15cf85effb8b artsharwrp\"><a href=\"https:\/\/news18.co\/gnps-en-btn\" target=\"_blank\" class=\"jsx-91f4da8d48c13a79 gglebtn bgylw\"\/><\/p>\n<div id=\"artshare\" class=\"jsx-cc1b15cf85effb8b artshare\">\n<div class=\"jsx-cc1b15cf85effb8b stickdiv\">\n<div class=\"jsx-cc1b15cf85effb8b deskwrapstkdiv\">\n<div class=\"jsx-cc1b15cf85effb8b fontchange\"><img decoding=\"async\" src=\"https:\/\/images.news18.com\/dlxczavtqcctuei\/news18\/static\/images\/english\/font.svg\" height=\"30px\" width=\"30px\" alt=\"font\" title=\"font\" class=\"jsx-cc1b15cf85effb8b lazyload\"\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<figure class=\"jsx-c9f81425ec968c48 jsx-977600415 amimg\"><img decoding=\"async\" alt=\"NPS subscribers will be able to invest in more than one scheme per tier, giving them wider choices.\" title=\"NPS subscribers will be able to invest in more than one scheme per tier, giving them wider choices.\" src=\"https:\/\/images.news18.com\/ibnlive\/uploads\/2021\/07\/1627283897_news18_logo-1200x800.jpg?impolicy=website&amp;width=400&amp;height=225\" loading=\"eager\" fetchpriority=\"high\" class=\"jsx-c9f81425ec968c48 jsx-977600415\"\/><\/p>\n<p>NPS subscribers will be able to invest in more than one scheme per tier, giving them wider choices.<\/p>\n<\/figure>\n<p id=\"0\" class=\"story_para_0\">The National Pension System (NPS) is set for a major revamp after the Pension Fund Regulatory and Development Authority (PFRDA) unveiled a new scheme framework on September 16. The proposal, which is aimed at making the retirement savings plan more flexible and attractive, includes sweeping changes in investment choices, exit rules, and withdrawal options.<\/p>\n<p id=\"1\" class=\"story_para_1\"><strong>What\u2019s New?<\/strong><\/p>\n<ul class=\"listOncontentArticleUL\">\n<li>Multiple Schemes: Pension fund managers (PFMs) can now launch more than one tailored scheme, compared to just one earlier.<\/li>\n<li>100% Equity Option: PFMs will be allowed to offer schemes with full equity exposure (versus the earlier 75% cap), from October 1, 2025.<\/li>\n<li>Multiple Investments: Subscribers will be able to invest in more than one scheme per tier, giving them wider choices.<\/li>\n<li>Common Schemes: The existing NPS schemes will be referred to as \u2018common schemes\u2019.<\/li>\n<\/ul>\n<p id=\"3\" class=\"story_para_3\"><strong>Early Exit Gets Easier<\/strong><\/p>\n<p id=\"4\" class=\"story_para_4\">One of the biggest changes is around early exit rules.<\/p>\n<ul class=\"listOncontentArticleUL\">\n<li>Under the new Multiple Scheme Framework (MSF), the minimum vesting period has been reduced to 15 years. For instance, if someone starts investing at 30 and exits at 45 with a corpus of Rs 50 lakh:<\/li>\n<li>In the current common scheme, 80% must go into an annuity and only 20% can be withdrawn as a lump sum.<\/li>\n<li>In the new MSF, only 40% needs to go into an annuity, while 60% can be taken as a lump sum.<\/li>\n<\/ul>\n<p id=\"6\" class=\"story_para_6\">This provides much more liquidity and flexibility to investors.<\/p>\n<p id=\"7\" class=\"story_para_7\"><strong>Proposed Big Changes<\/strong><\/p>\n<p id=\"8\" class=\"story_para_8\">The Pension Fund Regulatory and Development Authority\u2019s (PFRDA) discussion also suggests several other key tweaks:<\/p>\n<ul class=\"listOncontentArticleUL\">\n<li>Normal Exit: Currently, 60% of the corpus can be withdrawn as a lump sum, with 40% going into annuities. The new proposal flips this \u2014 80% lump sum, 20% annuity.<\/li>\n<li>Small Corpus Exit: The withdrawal limit may rise from Rs 5 lakh to Rs 12 lakh.<\/li>\n<li>Premature Withdrawal: The cap may be raised from Rs 2.5 lakh to Rs 4 lakh.<\/li>\n<li>Joining Age: Entry age could be extended up to 70 years, with continuation allowed till 85 years.<\/li>\n<li>Partial Withdrawal: Instead of being capped at 25%, withdrawals could be based on the corpus available at the time of request.<\/li>\n<li>Frequency: Withdrawals may be allowed up to 6 times before retirement, versus only 3 times currently.<\/li>\n<li>Loan Facility: Loans against NPS, which are currently not allowed, could become permissible.<\/li>\n<\/ul>\n<p id=\"10\" class=\"story_para_10\"><strong>Why It Matters<\/strong><\/p>\n<p id=\"11\" class=\"story_para_11\">These changes are designed to make NPS more appealing by giving investors higher flexibility and more control over their retirement money. The option of 100% equity investment could attract younger savers seeking higher long-term returns, while relaxed exit rules and partial withdrawal options will help those looking for liquidity.<\/p>\n<p id=\"12\" class=\"story_para_12\"><strong>Taxability<\/strong><\/p>\n<p id=\"13\" class=\"story_para_13\">While the new rules are generous, investors should note that under the 80% lump sum withdrawal, only 60% is tax-free. The remaining 20% will be taxed as per the applicable slab.<\/p>\n<div class=\"jsx-95088aad1b3c53cd atawrap\">\n<div class=\"jsx-95088aad1b3c53cd atadetailwrp\">\n<div class=\"jsx-95088aad1b3c53cd ataname\"><span class=\"jsx-95088aad1b3c53cd atthumb\"><\/p>\n<figure class=\"jsx-95088aad1b3c53cd\"><img decoding=\"async\" alt=\"Mohammad Haris\" title=\"Mohammad Haris\" src=\"https:\/\/images.news18.com\/ibnlive\/uploads\/2025\/07\/WhatsApp-Image-2025-07-08-at-16.46.30-2025-07-4288ce65f2e878c717819ce8b60fc7c8.jpeg?impolicy=website&amp;width=60&amp;height=60\" class=\"jsx-95088aad1b3c53cd\"\/><\/figure>\n<p><\/span><\/p>\n<div class=\"jsx-95088aad1b3c53cd attitle\"><a href=\"https:\/\/www.news18.com\/byline\/mohammad-haris-21410.html\" class=\"jsx-95088aad1b3c53cd atamail\">Mohammad Haris<\/a><\/p>\n<p>Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h&#8230;<span class=\"jsx-95088aad1b3c53cd aurpdebtn\">Read More<\/span><\/p>\n<\/div>\n<\/div>\n<p>Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h&#8230;<!-- --> <span class=\"jsx-95088aad1b3c53cd aurpdebtn\">Read More<\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"jsx-c9f81425ec968c48 jsx-977600415 artcta\">\n<div style=\"font-family:Inter;font-size:17px;line-height:28px\">\n<div style=\"font-family:Inter;font-size:17px;line-height:29px\">\n<div style=\"font-family:Inter;font-size:17px;line-height:28px\"><span data-olk-copy-source=\"MessageBody\"><a href=\"https:\/\/news18.co\/gnps-en\" target=\"_blank\" rel=\"noopener\">Click here<\/a> to add News18 as your preferred news source on Google, <\/span>Stay updated with all the latest business news, including\u00a0<a href=\"https:\/\/www.news18.com\/business\/markets\/\">market trends<\/a>,\u00a0<a href=\"https:\/\/www.news18.com\/topics\/stocks-to-watch\/\">stock updates<\/a>,\u00a0<a href=\"https:\/\/www.news18.com\/business\/tax\/\">tax<\/a>, IPO,\u00a0<a href=\"https:\/\/www.news18.com\/business\/banking-finance\/\">banking finance<\/a>, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates. Also <span data-olk-copy-source=\"MessageBody\">Download the\u00a0<a href=\"https:\/\/onelink.to\/eng-article-eop\">News18 App<\/a>\u00a0to stay updated!<\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"jsx-c9f81425ec968c48 jsx-977600415 atbtlink fp\"><span>First Published:<\/span><\/p>\n<div class=\"rs\">\n<p>September 27, 2025, 09:14 IST<\/p>\n<\/div>\n<\/div>\n<div id=\"coral-wrap\" class=\"jsx-ba4d8f086a12294f \">\n<div class=\"jsx-ba4d8f086a12294f coral-cont\">\n<div class=\"jsx-ba4d8f086a12294f coltoptxt\">Disclaimer: Comments reflect users\u2019 views, not News18\u2019s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our <a href=\"https:\/\/www.news18.com\/disclaimer\/\" class=\"jsx-ba4d8f086a12294f\">Terms of Use<\/a> and <a href=\"https:\/\/www.news18.com\/privacy_policy\/\" class=\"jsx-ba4d8f086a12294f\">Privacy Policy<\/a>.<\/div>\n<\/div>\n<\/div>\n<p><span class=\"jsx-c9f81425ec968c48 jsx-977600415 rmbtn news18_read_more\">Read More<\/span><\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.news18.com\/business\/savings-and-investments\/100-equity-option-multiple-schemes-nps-set-for-a-makeover-key-changes-you-should-know-ws-l-9599481.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last Updated:September 27, 2025, 09:14 IST PFRDA revamping National Pension System with flexible schemes, 100% equity option, easier exits, higher withdrawal limits, and extended joining age. NPS subscribers will be able to invest in more than one scheme per tier, giving them wider choices. The National Pension System (NPS) is set for a major revamp&#8230;<\/p>\n","protected":false},"author":1,"featured_media":15795,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-15794","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/15794","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=15794"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/15794\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/15795"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=15794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=15794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=15794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}