Retired Govt Employee at 54: Can I Continue NPS Until 60?

Ans: Yes, you can continue your NPS account under the All Citizens Model after resigning from your government job. Here’s how it works:

Key Points About Continuing NPS
You can contribute voluntarily to your NPS account till the age of 60.

You will need to switch your NPS account from the Government Sector to the All Citizens Model.

You can continue to invest in both Tier I and Tier II accounts as per your choice.

Your existing NPS corpus remains intact, and future contributions will grow as per market returns.

You can decide your asset allocation in equity, corporate bonds, and government securities.

Tax benefits will remain the same as per Income Tax rules.

At 60 years, you can withdraw up to 60% tax-free, and the remaining 40% must be used for an annuity.

Steps to Continue NPS After Resignation
Submit a request to your employer or nodal office to change your NPS account to the All Citizens Model.

Visit the NSDL or KFintech website to update your details.

Choose a Point of Presence (POP) for further contributions.

Start contributing voluntarily as per your financial capacity.

Final Insights
You do not need to be employed to continue investing in NPS.

Switching to the All Citizens Model allows you to keep your retirement planning on track.

Ensure you update your contact details and nominee information after resigning.



Best Regards,

K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment