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NPS Emergency Withdrawal: Use NPS Withdrawal Without Hurting Retirement Goals

Vikram Singh

February 22, 2026 at 5:28 PM IST · 3 min read

NPS Emergency Withdrawal: People often view the National Pension System (NPS) as a lifeline and a pension available only after retirement. But did you know that if needed, you can withdraw money from your NPS account even before retirement age? According to the latest rules for 2026, the government allows you to withdraw a portion of your investment for major expenses such as serious illness, children’s higher education, or building a house.

This facility is a boon for those who find themselves in a sudden financial crisis. In this article, we will discuss in detail how often and under what circumstances you can withdraw money from the NPS, so that you can secure your future and meet your current needs without any stress.

First and most important condition for withdrawing money

NPS Withdrawal Rules

To avail the partial withdrawal facility from NPS, you must first consider the time limit. According to the rules, you can withdraw funds from your NPS account only if it is at least three years old and you have invested regularly.

If your account has not yet completed three years, you will not be able to withdraw funds in case of any emergency. Therefore, don’t think of NPS as just a long-term investment; instead, consider it as a fund that can be used when needed after a three-year lock-in period.

Under what special circumstances is NPS withdrawal permitted

The Pension Fund Regulatory and Development Authority (PFRDA) has established very clear and humanitarian grounds for withdrawal. You can withdraw funds for the treatment of critical illnesses, whether for yourself, your spouse, your children, or your dependent parents.

Furthermore, withdrawals are also permitted to meet the rising expenses of your children’s higher education or for their marriage. You can also use NPS funds if you want to buy or build your dream first home. Just remember that the reason for withdrawing money must be completely valid, and you must have the supporting documents.

Withdrawal Limit and Taxes

NPS NEW UPDATE

A withdrawal limit has been set from NPS to ensure your old age is secured. You can withdraw a maximum of 25 percent of your total contribution. It’s important to note that this does not include the amount deposited by your employer. The best part is that this money is completely tax-free and is transferred directly to your bank account upon approval.

How to Apply

You must apply for emergency funds through your respective Point of Presence (POP), nodal office, or the official NPS online portal. You must provide concrete proof of expenses with your application. For example, a copy of a hospital bill for medical treatment, a college admission paper for studies, or a copy of a sale agreement for purchasing a house. The withdrawal process proceeds only after the documents are verified, so make sure your paperwork is complete and correct.

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