Annuity Options for NPS Subscribers
At the time of exit from the National Pension System (NPS), subscribers are required to purchase an Annuity Plan from a registered Annuity Service Provider (ASP) to receive a regular pension during retirement. An annuity ensures a steady income for life and adds long-term financial security post-retirement.
Subscribers can choose from the following annuity options, based on their needs and family considerations. Only one option may be selected at the time of annuity purchase.
- Annuity for Life with Return of Purchase Price (ROP)
The subscriber receives a fixed pension for life. Upon their demise, the annuity stops and 100% of the purchase price is returned to the nominee(s).
- Joint Life Annuity with Return of Purchase Price
The subscriber receives a pension for life. After their death, the same annuity amount continues to the spouse for life. Upon the spouse's death, the annuity ceases and 100% of the purchase price is returned to the nominee(s).
- Family Income with Return of Purchase Price (NPS – Family Income Option)
This option provides a family-wide annuity cover:
- Pension is paid to the subscriber for life
- On their death, the annuity continues to the spouse
- After the spouse’s demise, it continues to the dependent mother, and then to the dependent father
- Once all listed family annuitants pass away, the annuity stops, and 100% of the purchase price is returned to the surviving children or legal heirs
- Annuity for Life without Return of Purchase Price
The subscriber receives a pension for life. On their death, the annuity ceases, and no amount is returned to the nominee.
- Joint Life Annuity without Return of Purchase Price
The subscriber receives a pension for life. After their death, the annuity is transferred to the spouse for life. Once the spouse passes away, the annuity stops, with no return of the purchase price.
Each annuity option is designed to cater to different retirement needs—from ensuring personal income security to supporting family dependents. Choosing the right annuity option is an important step in your retirement journey.