Big changes are coming for pension investors in India.
The chairman of the Pension Fund Regulatory and Development Authority (PFRDA), Sivasubramanian Raman, has revealed that new pension plans may soon offer something extra — health insurance along with pension.
This move could make retirement planning much more powerful and practical.
Pension + Health Insurance in One Plan
Three pension fund companies are currently working on special schemes that will combine pension benefits with health cover.
The health insurance may be offered:
In partnership with insurance companies
Directly through hospitals and healthcare networks
This means investors may not only secure monthly income after retirement but also get help with rising medical costs.
For senior citizens, this could be a major relief.
“Health Box” Feature in NPS
The National Pension System (NPS) will soon introduce a new feature called the “Health Box.”
Here’s how it will work:
NPS account holders can use funds as a top-up for health insurance.
It can help cover hospital expenses.
This is especially helpful for older individuals who struggle to buy fresh health insurance due to age restrictions.
It adds a safety net without needing a separate policy.
Open NPS Account with UPI in Just 3 Steps
Another big update is digital access.
Soon, users of the National Payments Corporation of India (NPCI) platform will be able to open an NPS account simply by scanning a QR code.
Since over 80 crore people already use UPI and their KYC is linked with banks, opening an account could become much faster and easier.
This step aims to attract more young and self-employed individuals to start retirement planning early.
More Investment Options Coming
PFRDA is also expanding investment choices.
The “Multiple Scheme Framework,” launched in October, has already received strong response.
Many large banks see NPS as a growing revenue opportunity and are expected to promote it more aggressively.
There are also discussions about allowing investments in:
Real estate
Project finance
Other asset classes similar to AIFs
If implemented, this could improve returns and give investors more diversified options.
With health cover, easier digital access, and expanded investment choices, NPS is being reshaped into a more flexible and attractive retirement tool.
For anyone thinking about long-term financial security, these changes could make a real difference.
