The Pension Fund Regulatory and Development Authority (PFRDA) recently launched the second proof of concept for the groundbreaking initiative 'NPS Swasthya,' which has been designed to reshape the way Indians view their retirement savings. The initiative is intended to provide healthcare funding along with retirement planning.
Traditionally, the National Pension System (NPS) has served as a major vehicle for long-term financial security. It ensures that subscribers build a corpus to sustain themselves during their post-retirement years. Amid rising healthcare costs and medical emergencies often draining household finances, PFRDA has now come up with a mechanism that allows pension funds to serve a dual purpose — retirement planning and healthcare support.
What To Know?
PFRDA, which serves as the regulatory authority, has described NPS Swasthya as a multi-partner initiative that has been structured to provide comprehensive financial support along with health security.
As per the official statement, the new initiative will see the Medi Assist Healthcare Services acting as the core technology partner to provide digital infrastructure, while CAMS KRA supports subscriber onboarding and KYC enablement. Meanwhile, Tata Pension Fund and Axis Pension Fund will serve as the designated pension fund managers.
Further, it stated that the Aditya Birla Health Insurance provides the integrated top-up insurance cover, with Medi Assist TPA managing claims administration.
"The initiative addresses a growing gap in India's retirement landscape, where healthcare costs are projected to rise by 11.5 per cent to 14 per cent in 2026, significantly outpacing inflation and putting long-term financial security under pressure for millions," PFRDA said.
The scheme has been introduced at a time when the pension ecosystem rapidly scales with NPS and Atal Pension Yojana (APY), having a cumulative subscriber base of 9.64 crore. Its combined assets under management are pegged at Rs 16.55 lakh crore, as of March 29, 2026.
While the NPS funds have usually remained locked until the subscriber reaches retirement age, the NPS Swasthya initiative provided them access to a "Net Eligible Balance" up to 25% of their contributions.
Subscribers will be able to access these retirement units for immediate medical expenses via the MAven App, which has been developed by Medi Assist Healthcare Services. It features direct integration with the CAMS Central Recordkeeping Agency (CRA).
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The NPS Swasthya scheme remains available to Indian citizens aged 18 to 85. Enrollment under this scheme is subject to a ‘Good Health Declaration,' which ensures a streamlined onboarding process for members without major pre-existing conditions such as heart disease or diabetes.
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