Annuity In NPS
Annuity In NPS
Annuity In NPS
What is an Annuity in NPS?
An annuity converts a lump sum into regular income through a selected annuity option. Retirement planning is not just about building a corpus — it’s about creating a steady income for the years ahead.
With NPS, a part of your retirement corpus can be used to purchase an annuity, helping you create a regular income for your retirement.
NPS ANNUITY : 6 Features for Lifelong Financial Security
Guaranteed Regular Income
Receive a steady stream of income after retirement, helping you manage your regular financial needs with greater confidence.
Multiple Annuity Options
Tailor coverage with Life Annuity, Joint Life protection for spouse, or 100% Return of Purchase Price (RoP) to nominees.
Empanelled ASP Choice
Freedom to choose from all 14+ PFRDA-registered Annuity Service Providers through a single window on the CRA portal.
Payout Frequency Flexibility
Choose a payout frequency that suits your financial needs — Monthly, Quarterly, Half-Yearly, or Yearly.
Spouse & Family Protection
Choose options that can continue financial support for your spouse or return the purchase price to your nominees.
Reinvestment Risk Shield
Fixed deposits renew every few years at unpredictable rates. Annuity locks in your payout rate for life after retirement.
WHAT ANNUITY MEANS IN EVERYDAY LIFE
NPS Annuity delivers dignity, partner protection, and legacy for your loved ones.
Uninterrupted Security for Spouse & Children
Pension flows seamlessly to your spouse for their lifetime, after which 100% of the invested corpus returns to your children or nominees.
Freedom to Pursue Passions Without Worry
Predictable direct credit gives you confidence to enjoy morning walks, travel, and gardening without dipping into core retirement capital.
Transparent Comparison Across 14+ ASPs
As a registered PoP, Farsight sits on your side of the table to help you compare quotes, pick frequency, and execute your CRA exit smoothly.
WHICH ANNUITY BEST SUITS YOUR RETIREMENT GOALS?
Your annuity should reflect what matters most to you in retirement.
| NPS Annuity Option | Key Benefit |
|---|---|
| Life Annuity | Lifetime pension for the subscriber |
| Life Annuity with Return of Purchase Price | Lifetime pension + purchase price returned to nominee |
| Life Annuity with Critical Illness Benefit | Benefit for specified critical illness or return of purchase price |
| Joint-Life Annuity with Return of Purchase Price | Pension for spouse after subscriber’s death + purchase price returned thereafter |
Availability and terms may vary by provider and selected option.
NPS ANNUITY: KEY POINTS TO CONSIDER
Don’t compare annuities on pension amount alone.
Purchase Price
Check the amount of your NPS corpus being used to purchase the annuity.
Annuity Rate
Compare the applicable annuity rate offered by different providers.
Exit & Cancellation Rules
Understand the rules and limitations applicable after purchasing the annuity.
Tax Implications
Check how your annuity income and other applicable benefits will be taxed.
Nominee Details
Ensure your nominee information is correctly updated before completing the process.
Documentation & Process
Review the required documents, timelines, and process before submitting your annuity request.
NPS ANNUITY TAXATION
Eligible NPS lump-sum withdrawal is tax-exempt, subject to applicable tax laws.
The amount used to purchase an annuity is not taxed at the time of purchase.
Pension received from the annuity is taxable as per the applicable income-tax slab.
Get Annuity Guidance
Get expert guidance on your NPS exit and annuity options.
Choose the right annuity plan for a regular income after retirement.
