What is NPS Swasthya? The Pension Fund Regulatory and Development Authority (PFRDA) has launched the second proof of concept (PoC) of NPS Swasthya. It’s part of a regulatory sandbox that aims to link retirement savings with healthcare funding, giving National Pension System (NPS) subscribers a way to use part of their pension money for medical expenses.
Who can join? The scheme is open to Indian citizens aged 18 to 85. At the time of enrolment, subscribers need to provide a health declaration.
How much can be withdrawn? Subscribers may access up to 25% of their contributions, called the “net eligible balance”, for medical needs. Withdrawals can be made digitally through the MAven app, which is integrated with the Central Recordkeeping Agency system.
What medical costs are covered? The second PoC expands beyond outpatient services to now include hospitalisation and inpatient expenses. This means subscribers can use their pension savings for OPD visits, medicines, and even cashless hospitalisation.
Who are the partners? It’s a multi‑partner framework: Medi Assist Healthcare Services provides the digital infrastructure and claims administration; CAMS KRA supports onboarding and KYC; Tata Pension Fund Management and Axis Pension Fund handle pension f-und management; Aditya Birla Health Insurance offers a group health super top‑up cover. Medi Assist’s network includes over 15,500 hospitals across 1,264 cities.
Why is this important? Healthcare costs in India are rising faster than general inflation; industry estimates suggest growth of 11.5%-14% in 2026. NPS Swasthya is designed to ease this burden by allowing pension savings to double up as a healthcare safety net.
What happens to unused contributions? Any unutilised money remains invested in the pension fund, continuing to generate market‑linked returns. This ensures subscribers don’t lose out on retirement savings while still having healthcare support.
How big is the NPS base? As of March 29, 2026, the combined subscriber base of NPS and c stood at Rs 9.64 crore, with total assets under management of about Rs 16.55 lakh crore.
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