NPS partial withdrawal lets you withdraw up to 25% of your own contributions (not employer’s) after 3 years of account opening, for specific purposes. This is useful for FIRE investors who may need liquidity before 60.

Eligible Purposes

• Higher education (self or children)
• Marriage (self or children)
• Purchase/construction of first home
• Treatment of critical illness (self, spouse, children, parents)

Limits

• Maximum 3 withdrawals during the entire tenure
• Each withdrawal limited to 25% of total contributions
• At least 5 years between withdrawals (except for critical illness)

For FIRE

NPS is illiquid until 60 for the bulk of your corpus. Partial withdrawal helps in emergencies but is not a substitute for having liquid assets (mutual funds, PPF after 15 years) for early retirement. Plan your asset allocation accordingly.