New NPS Rule: A Smarter Way To Get Monthly Income After Retirement?

The Pension Fund Regulatory and Development Authority's new Retirement Income Scheme (RIS) under the National Pension System offers retirees a structured way to generate post-retirement income. Mrin Agarwal, CEO, Finsafe, explained that up to 80% of the NPS maturity corpus can now be invested in RIS, with equity exposure gradually reducing as investors age to manage risk. She noted that the scheme offers systematic withdrawal or payout options but remains market-linked, unlike fixed deposits. Agarwal advised retirees to understand that monthly payouts may fluctuate and that the withdrawal rates are maximum limits, not guaranteed income throughout retirement.