Bengaluru: The Pension Fund Regulatory and Development Authority (PFRDA), in collaboration with leading industry partners, has introduced NPS Swasthya under its regulatory sandbox framework. This initiative aims to integrate retirement savings with healthcare accessibility, addressing a critical gap in India’s evolving financial landscape.

NPS Swasthya is a multi-stakeholder model designed to provide both financial stability and medical security. While PFRDA acts as the regulatory authority, Medi Assist Healthcare Services serves as the technology backbone, enabling seamless digital infrastructure. CAMS KRA facilitates onboarding and KYC processes, while Tata Pension Fund and Axis Pension Fund manage investments. Health coverage is supported by Aditya Birla Health Insurance, with claims handled by Medi Assist.

The initiative comes at a time when healthcare costs in India are projected to rise by 11.5%–14% in 2026, significantly outpacing inflation. Simultaneously, the pension ecosystem continues to expand, with National Pension System (NPS) and Atal Pension Yojana (APY) collectively reaching 9.64 crore subscribers and assets under management of ₹16.55 lakh crore.

A key feature of NPS Swasthya is the ability for subscribers to access up to 25% of their “Net Eligible Balance” for medical expenses. Through the MAven app, users can digitally withdraw funds for immediate healthcare needs, while unutilised contributions continue to earn market-linked returns. The program also integrates a group health super top-up insurance plan and provides access to a network of over 15,500 hospitals across 1,264 cities.

Speaking on the launch, Sivasubramanian Ramann said:
“Currently 10% of Indian Population falls in the category of senior citizens and this demographic is expected to climb to over 20% by the year 2045-50. The fact of the matter is that several elderly remain outside the medical insurance net, making them extremely vulnerable to expenses beyond their reach. The idea of retiring with dignity cannot be alienated from a strong sense of medical security for the elderly. It is not often that we find two regulatory systems coming together to create something for the customers’ benefit. The entire premise of NPS Swasthya Pension Scheme rests on the feasibility of integrating health-related benefit mechanisms with the existing NPS architecture and to assess the associated operational, technological and regulatory aspects. While the first proof of concept launched in January 2026 was for outpatient services, the second proof of concept launched today is about inpatient and hospitalization bills. When put together, we can actually appreciate the consolidated service from the Swasthya Account. NPS Swasthya Pension Scheme not only grows the subscriber’s corpus at a rate that is comparable to other popular instruments available in the market, but also provides financial support for out-patient and in-patient medical expenses in case of medical emergencies. It is gratifying to see the potential fusion between a pension account and the concept of a top-up medical insurance clubbed for the larger good of the elderly who otherwise remained outside the ambit of medical insurance in the sunset phase of their life.”

The scheme is open to Indian citizens aged 18–85, subject to a good health declaration. With this initiative, PFRDA and its partners aim to redefine social security by combining long-term savings with healthcare readiness, supporting the broader vision of a financially secure and healthier India.