Under the PFRDA circular dated 15 May 2026, you can now keep your NPS corpus invested at exit and draw a regular monthly, quarterly or annual payout yourself, instead of being pushed into a full annuity or a one-time lump sum. You must still buy the minimum annuity for the prescribed portion.
If you are short on time, jump to the comparison tables below to see how the new Retirement Income Scheme stacks up against a full annuity and a lump sum, and how the two payout methods differ.
Quick answer: The Retirement Income Scheme, or RIS, lets you leave your withdrawable NPS corpus invested and take a steady payout. You choose monthly, quarterly or annual, and you pick one of two methods, SPR or SUR. You still annuitise the minimum prescribed portion for lifelong pension.
The Retirement Income Scheme is a drawdown facility introduced by the PFRDA circular dated 15 May 2026. It lets a retiring NPS subscriber keep the withdrawable part of the corpus invested and self-draw a regular income. It is an alternative to taking that part as a single lump sum.
This table contrasts the three routes for the withdrawable portion of your corpus. Note that the mandatory annuity sits outside this choice and applies in every case.
| Option | How you get the money | Stays invested? | Best when |
|---|---|---|---|
| Full annuity | You hand the corpus to an insurer for a fixed lifelong pension | No, the insurer holds it | You want certainty and zero management |
| Lump sum | You take the withdrawable portion as one cash payout | No | You need a large amount at once |
| RIS and drawdown | You keep it in NPS and self-draw monthly, quarterly or annual | Yes, in NPS | You want regular income plus market growth |
Once you choose RIS, you select how each payout is calculated.
| Feature | Systematic Payout Rate, SPR | Systematic Unit Redemption, SUR |
|---|---|---|
| What is fixed | A payout percentage set by your age and remaining drawdown period | A fixed number of units redeemed each period |
| How it changes | The percentage rises each year, so the corpus is used up by about age 85 | The unit count stays equal each period |
| Payout amount | Varies with corpus value and the rising rate | Varies with the unit value at each redemption |
| Suits you if | You want the corpus drawn down on a planned timeline | You prefer a steady, predictable unit-based withdrawal |
For background on the older exit split, see the related guides below.
Anjali Verma, age 60, Dehradun district. At exit her NPS corpus is split per the rules. She sets aside the minimum prescribed portion, 40% in her category, to buy a lifelong annuity. For the remaining withdrawable portion she chooses RIS instead of a lump sum.
She picks the Systematic Payout Rate method and a monthly frequency, so a payout percentage set by her age and remaining drawdown period is credited each month, rising each year so the corpus is used up by about age 85. All rupee amounts in her plan are illustrative only and depend on her actual corpus and market value. The takeaway: she keeps her money invested and still receives a regular monthly income.
No. The mandatory annuitisation still applies. You must use the minimum prescribed portion, 20% or 40% depending on your category, to buy an annuity for lifelong pension. RIS and drawdown apply only to the withdrawable portion of your corpus.
Under Systematic Payout Rate, SPR, a payout percentage is set by your age and remaining drawdown period and rises each year, so the corpus is used up by about age 85. Under Systematic Unit Redemption, SUR, an equal number of units is redeemed each period instead.
You can choose monthly, quarterly or annual payouts. Pick the frequency that matches how you spend. Monthly suits retirees who rely on the income for routine expenses, while annual may suit those with other income sources.
The Retirement Income Scheme and drawdown options were introduced by the PFRDA circular dated 15 May 2026, built on amendments to the PFRDA, Exits and Withdrawals under NPS, Regulations, 2025.
Yes. That is the core benefit. Instead of taking a lump sum, you keep the withdrawable portion invested in NPS and draw a regular income from it. The mandatory annuity portion is separate and goes to an insurer.