How many years will we get a pension from NPS?
- Posted:30th January, 2025
- Updated:30th January, 2025
The National Pension System (NPS) offers a pension for life after retirement. Upon reaching retirement age (usually 60), you must use a minimum of 40% of your NPS corpus to purchase an annuity, which provides regular monthly pension payments. The pension will continue for as long as you live. The duration of the pension depends on your lifespan.
For example, if you retire at 60 and live until 85, you will receive a pension for 25 years. The annuity provider (usually an insurance company) guarantees the pension payments based on the annuity plan chosen.
Additionally, NPS offers various annuity options. Some annuity plans continue to pay the pension to the spouse or nominee after the subscriber's death. In such cases, pension payments may extend beyond the subscriber's life.
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