Job Switch or Move Abroad? Your NPS account rides with you

NPS travels wherever your career takes you—domestically or globally.

The National Pension System (NPS) is one of the most flexible retirement tools. Whether you switch jobs or relocate overseas, your NPS account remains intact because of the unique Permanent Retirement Account Number (PRAN).

Here’s a guide on what changes—and what doesn’t—during these life transitions.

Job switch: Your PRAN travels with you

When an individual switches jobs, even then his NPS account stays active and fully portable. “Since the PRAN is unique and stays valid for life, one doesn’t need to open a new account,” said Ajay Kumar Yadav, CFP, Group CEO & CIO, Wise Finserv, a diversified financial services company.

You can continue contributions to the same Tier-I and Tier-II accounts. If the new employer offers NPS under the corporate model, simply link your existing PRAN. Otherwise, contribute individually through the e-NPS portal or your bank.

Minimal impact on investments, Perfect time for review

A job switch rarely affects your existing corpus—the money stays invested with your chosen fund manager and asset allocation. However, salary hikes or new benefit structures present an opportunity.

Yadav recommends, “If your new role provides a higher salary or a different benefits structure, you might consider increasing your voluntary contributions to stay aligned with your long-term retirement goals and compounding potential.”

Kirang Gandhi, Pune-based Financial Mentor said, “Review your allocation and risk profile, especially if your income and retirement timeline change.”

Regular rebalancing ensures your equity, corporate debt, and government securities mix matches your evolving risk appetite and market conditions.

Also read | National Pension System: Why NPS should be a key investment for retirement

Moving Abroad: NRIs can continue seamlessly

“If you are relocating to another country, you still have the facility of maintaining and contributing to your NPS account as an NRI,” said Yadav. Provided you maintain an NRE or NRO account for contribution.

Contributions and crediting happen only in INR. Update KYC with passport, overseas address proof, and FATCA/CRS declaration. However, NPS currently restricts contributions from US and Canada citizens or residents.

Gandhi said, "If things take you permanently abroad, you can continue the account until 60 and finally withdraw it into your Indian bank account." Keep nominee details and bank information current.

Tax benefits and withdrawal rules remain consistent

NRIs retaining Indian taxable income under the old tax regime continue to claim deductions under Sections 80C and 80CCD(1B).

Withdrawal rules remain the same regardless of job change or relocation. At age 60, individuals are allowed to withdraw up to 60 percent of the NPS corpus tax-free, and they are required to use 40 percent to buy an annuity.

For premature exits (before 60), individuals can withdraw 20 percent as a lump sum, and 80 percent must be put into an annuity.

For NRIs, taxation depends on their residential status in the year of withdrawal. “If classified as a resident, Indian tax rules apply. If non-resident, taxation may vary depending on DTAA provisions with their host country,” said Yadav.

You can even defer withdrawals until age 75 to benefit from compounding.

Also read | Gold or real estate in 2025: What should Indian investors choose?

Strategic adjustments for optimal growth

Life changes require portfolio adjustments. When switching jobs, reassess your contribution levels and asset mix. If relocating overseas, consider reducing high-volatility equity investments if you’ll need the funds. Maintain consistent contributions, even from abroad, to benefit from rupee-cost averaging. If your retirement horizon remains long-term, you can stick to a growth-oriented allocation.

“NPS has been one of the most clear, inexpensive, and orderly retirement products that both residents and NRIs could access, said Yadav. Its portability not only supports the continuity of retirement planning over the course of time but also is able to do so through employer changes, different geographic locations and the use of different platforms, he added.

In short, your NPS travels wherever your career takes you—domestically or globally. Keep up with your portfolio reviews, Know Your Customer updates, and your contributions, and your retirement fund will keep growing.