SLW in NPS – A Planned Staggered Withdrawal
Amit Sinha
Certified Independent Director I C-Suite Leadership I Key Architect of the National Pension System I B2B2C E-Governance Expert I Pioneer in Social Security Initiatives I Capital Market Professional
Knowing how to use the accumulated wealth for lifetime consumption is as important as knowledge on investment. The lump sum withdrawal of 60% in NPS can be withdrawn in a staggered manner instead of a bullet payment in one go. SLW is facilitating the execution of taking your money out in a planned timely manner. The important aspects are;
Is growth in corpus during SLW taxable?
Considering the existing functionality of deferment and continuation of NPS beyond superannuation age, the growth in value till final withdrawal is not taxable.? Applying the same principle, in my understanding, SLW is not taxable.
When can one start SLW??
One can join NPS between the age of 60 to 70 years also. This implies you need not necessarily start SLW only at age 60. You may continue NPS beyond 60, start SLW at any point of time after 60 years and continue up to age 75. The frequency of SLW can be monthly, quarterly or annually.
With reference to attached the recently published news article, I would recommend you to read my article ”Exiting from NPS Part II” to know more about managing influx of fund, protect from inflation adjusted lifestyle expenses, benefit of staying long in NPS etc.
Chief Engineer (Retd) CREDA | Certified Energy Auditor | Accredited Green Building Professional . Renewable Energy, Energy Efficiency, ESG, Sustainability ,Climate Change Consultant/Expert,
10 个月I recently opted SLW after my superannuation . As per scheme , I will get some fixed amount on monthly basis till the age of 75 years, but there is no clarity on scheme that how much lump sum I will get after 75 years and how much my nominee will get on my death . Can anyone exit from SLW and get balance lump sum any time ? Can you please clarify on above ??
Certified Independent Director I C-Suite Leadership I Key Architect of the National Pension System I B2B2C E-Governance Expert I Pioneer in Social Security Initiatives I Capital Market Professional
1 年Sure Bhushan. Will surely keep it in mind as we relook at the NPS Prosperity Planner
A lifelong student, Amateur youtuber, Knowledge collector and distributor
1 年Nice crisp article. I suggest to Protean CRA that an SLW simulator be made available on the website as well as in the functionality where SLW will be initiated by the Subscriber. It will help Subscriber to choose either period or amount.