INCOME TAX2 Oct 2026
NPS Retirement Income Scheme: How payouts work, what happens to annuity and where corpus is invested | Mint
On 15 May 2026, PFRDA launched Retirement Income Schemes (RIS) for National Pension System (NPS) subscribers. Now you can take regular payouts — monthly, quarterly or yearly — from the corpus portion available for phased withdrawal, continuing up to age 85. The mandatory annuity rule stays: 20% or 40% must still buy an annuity. Payouts aren't fixed; they depend on your corpus.
Key Statutory Highlights
- PFRDA introduced Retirement Income Schemes for NPS subscribers on 15 May 2026.
- You can choose payouts every month, every quarter or once a year, up to the age of 85 years.
- The mandatory annuity rule is unchanged, so 20% or 40% of the corpus must still be used to buy an annuity as applicable.
Actionable Advice for Taxpayers / Founders:Before you exit NPS, review your applicable exit rules and speak to your pension fund or an annuity provider about how much of your corpus you want as regular RIS payouts and how much goes into the mandatory annuity.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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