Summary of this article
PFRDA contemplates NPS Swasthya as a multi-partner initiative to offer healthcare funding along with retirement planning.
The scheme allows NPS subscribers to access up to 25 per cent of their contributions for medical expenses via the MAven app.
Rising healthcare cost is projected to outpace inflation and strain India’s growing pension ecosystem.
Pension fund regulator PFRDA launched the second "Proof of Concept (POC) of NPS Swasthya", an initiative intended to provide healthcare funding along with retirement planning.
According to a statement, PFRDA said the National Pension System (NPS) Swasthya is a multi-partner initiative structured to provide comprehensive financial and health security.
The Pension Fund Regulatory and Development Authority (PFRDA) serves as the regulatory authority. The Medi Assist Healthcare Services acts as the core technology partner, providing digital infrastructure whereas CAMS KRA supports subscriber onboarding and KYC enablement and Tata Pension Fund and Axis Pension Fund serve as the designated pension fund managers, the statement said.
It added that 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 per cent to 14 per cent in 2026, significantly outpacing inflation and putting long-term financial security under pressure for millions," PFRDA said.
It added that this scheme comes at a time when the pension ecosystem is rapidly scaling with 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 lakh crore as of 29 March 2026.
The 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 per cent 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) API.
