Retirement 2026: The ₹8 Lakh Rule, SUR, and the NPS 80:20 Rule
December 2025 brought the biggest change to NPS withdrawal rules since the scheme’s launch. This guide explains the new PFRDA framework in three parts: the “₹8 Lakh Rule” (corpuses up to ₹8 lakh can be withdrawn 100% as lump sum, no annuity required), “SUR” or Systematic Withdrawal (for the ₹8–12 lakh band, ₹6 lakh can be taken immediately with the rest drawn down over a minimum 6 years or annuitised), and the new “80:20 Rule” (corpuses above ₹12 lakh now require only 20% mandatory annuitisation, up to 80% as lump sum — versus the earlier 60:40 split). We also cover the removed 5-year lock-in, the extended deferral age of 85, and flag the one open question: tax treatment of the additional 20% lump sum above the previously-exempt 60% is still awaited from tax authorities.