Comprehensive guide to NPS Premature Exit rules 2026. Understand eligibility, the ₹10L full withdrawal threshold, annuity requirements, and how to avoid the 80% trap.

"Retiring in 2026? The PFRDA has flipped the script on NPS withdrawals. Private sector subscribers can now access up to 80% of their corpus as a lump sum but there is a catch. The tax rules haven't caught up, creating a potential 'tax trap' for the uninformed. This guide decodes the new 80:20 rule, explains the tax-saving power of Systematic Lump Sum Withdrawal (SLW), and clarifies the new ₹8 Lakh limit for 100% cash exits. Read on to master the 'Smart Exit'."