Vipin Upadhyay Highlights Greater Subscriber Autonomy Under PFRDA’s NPS 2025 Amendments

In a recent article examining the National Pension System (NPS) reforms for 2025, Vipin Upadhyay highlighted the significance of the Pension Fund Regulatory and Development Authority’s (PFRDA) amendments to the Exit and Withdrawal Regulations. He noted that the changes reflect a clear policy shift towards enhancing subscriber autonomy while continuing to safeguard the fundamental objective of retirement security.

Vipin pointed out that by removing rigid lock-in and vesting requirements for non-government subscribers and increasing the permissible lump sum withdrawal to 80%, the regulator has brought the NPS framework in line with the realities of an increasingly mobile and voluntary workforce. According to him, these reforms make the system more flexible and responsive to evolving employment patterns without undermining long-term retirement goals.

He further highlighted the introduction of phased withdrawal mechanisms such as Systematic Lumpsum Withdrawals and Systematic Unit Withdrawals as a key modernisation step. These options, he explained, allow retirees to better manage longevity and reinvestment risks over time. Vipin also noted the limited permission to create liens on pension accounts in favour of regulated lenders as a significant development that improves liquidity access, while cautioning that robust regulatory safeguards will be essential to ensure retirement protections are not diluted.

Link to article: https://www.business-standard.com/finance/personal-finance/nps-changes-2025-80-withdrawal-more-lump-sum-less-annuity-exit-relief-125122200156_1.html