Buy a Life Insurance Plan in a few clicks
Now you can buy life insurance plan online.
Insurance and Investment in one plan.
Protect your family's financial future.
Kotak Guaranteed Fortune Builder
A plan that offers guaranteed income for your future goals.
A plan that works like a term plan, and Earns like ULIP Plan.
Kotak Assured Savings Plan
A plan that offer guaranteed returns and financial protection for your family.
Kotak Assured Pension
A plan that offers immediate or deferred stream of income
Kotak Lifetime Income Plan
Retirement years are the golden years of life.
Kotak Guaranteed Savings Plan
A plan that offers long term savings and life cover.
Our representative will get in touch with you at the earliest.
Ref. No. KLI/22-23/E-BB/492
PFRDA has announced a new policy allowing users to withdraw up to 60 percent of their pension fund, providing increased flexibility and financial options for retirees.
In a significant move aimed at putting more control in the hands of retirees, the Pension Fund Regulatory and Development Authority (PFRDA) has recently announced a groundbreaking decision. Retirement, often seen as the golden period of one’s life, is now set to become even more flexible.
The PFRDA has proposed a Systematic Lump Sum Withdrawal (SLW) facility for its pensioners. This allows NPS subscribers to withdraw up to 60% of their total pension corpus in installments, monthly, quarterly, half-yearly, or annually until a subscriber turns 75.
The regulator encouraged authorities and stakeholders to inform those nearing 60 or looking to exit the National Pension Scheme about the SLW facility. Central Record Keeping Agencies are also urged to provide detailed information about SLW on their online platforms.
Allowing a 60% withdrawal from pension funds is a significant game-changer in retirement planning. It acknowledges that retirees have diverse financial goals and may need access to a more significant portion of their savings before the traditional retirement age. This flexibility enables pensioners to adapt their financial strategies based on their circumstances, fostering empowerment and control.
The PFRDA’s move is expected to encourage more individuals to consider pension schemes a viable and dynamic component of their financial planning. The ability to access a substantial portion of the pension corpus when needed adds a layer of practicality to retirement planning, making it more attuned to the evolving needs of individuals and families.
The decision to withdraw up to 60% of pension funds is complex, requiring careful consideration of pensioners’ immediate needs and long-term financial security. While the increased financial flexibility can be beneficial, retirees need to weigh the advantages against the potential challenges and risks involved.
Retirees can now access a significant chunk of their pension fund, providing them the financial flexibility they need. Whether for managing healthcare expenses, planning a dream vacation, or supporting family members, this withdrawal option opens up a world of possibilities.
Life is unpredictable, and emergencies can arise when least expected. Allowing pensioners to withdraw a substantial portion of their funds ensures they are better prepared to handle unexpected financial challenges, be it medical emergencies or unforeseen expenses.
With the newfound ability to withdraw a significant portion of their pension fund, retirees can explore new investment opportunities. Whether starting a small business, investing in a passion project, or simply diversifying their financial portfolio, this decision empowers retirees to make strategic financial choices.
Retirement should be a time of relaxation and enjoyment. By permitting a higher withdrawal limit, the PFRDA is directly contributing to improving the quality of life for pensioners, enabling them to make the most of their post-employment years.
It’s important to note that while this decision provides retirees with greater financial autonomy, it also emphasizes the need for responsible financial planning. Retirees are encouraged to carefully consider their financial goals and needs before withdrawing.
The PFRDA’s move to allow users to withdraw up to 60% of their pension fund marks a significant milestone in the area of retirement planning in India. By putting more control in the hands of pensioners, the authority acknowledges retirees’ diverse needs and recognizes the importance of financial autonomy in the post-employment phase.
By acknowledging the diverse financial needs of retirees and granting them greater control over their pension funds, the regulatory body has demonstrated its commitment to evolving with the changing dynamics of retirement planning. This move meets the immediate needs of pensioners and reflects a forward-thinking approach to pension policy for a better tomorrow.
Ref. No. KLI/22-23/E-BB/2435