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Pension Fund Regulatory and Development Authority (PFRDA) launched NPS Swasthya, an initiative intended to provide for healthcare funding along with retirement planning.
The multi-partner initiative structured to provide comprehensive financial and health security. PFRDA serves as the regulatory authority. Medi Assist Healthcare Services acts as the core technology partner, providing digital infrastructure. CAMS KRA supports subscriber onboarding and KYC enablement. Tata Pension Fund and Axis Pension Fund serve as the designated pension fund managers. Aditya Birla Health Insurance provides the integrated top-up insurance cover, and Medi Assist TPA manages claims administration.
The initiative addresses a growing gap in India’s retirement landscape, where healthcare costs are projected to rise by 11.5%–14% in 2026, outpacing inflation and putting long-term financial security under pressure for millions. This comes at a time when the pension ecosystem is rapidly scaling, with National Pension System (NPS) and Atal Pension Yojana (APY) having a cumulative subscriber base of 9.64 crore and combined assets under management pegged at Rs. 16,55,655 crore as of 29th March, 2026.
NPS funds have traditionally remained locked until the subscriber reaches retirement age. NPS Swasthya is designed to provide subscribers access to a ‘Net Eligible Balance’ up to 25% of their contributions. Subscribers can access these retirement units for immediate medical expenses through the MAven App, developed by Medi Assist Healthcare Services, which features direct integration with the CAMS Central Recordkeeping Agency (CRA).
Sivasubramanian Ramann, Chairperson, PFRDA 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 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, this is the second proof of concept which deals 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, he added.
The NPS Swasthya Scheme is available to Indian citizens aged 18–85. Enrollment is subject to a ‘Good Health Declaration,’ ensuring a streamlined onboarding process for members without major pre-existing conditions like heart disease or diabetes.
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