If you invest in the National Pension System (NPS), there is important news for you.
Your NPS savings may now help you meet medical expenses along with securing your retirement.
The Pension Fund Regulatory and Development Authority (PFRDA) has launched the second proof-of-concept for NPS Swasthya.
The initiative is currently being tested as a pilot project.
NPS Swasthya is designed to connect retirement savings with healthcare needs.
Under this facility, eligible NPS subscribers can use a part of their pension savings for medical treatment when required.
How Does NPS Swasthya Work?
Health insurance is required to participate in NPS Swasthya.
The insurance premium will be deducted from the subscriber’s NPS savings.
To use this facility, subscribers need to make a minimum initial investment of ₹25,000.
After meeting the required conditions, subscribers can withdraw up to 25% of their net eligible NPS balance for medical expenses.
The money can be used for medicines, hospitalisation and other eligible healthcare costs.
The service can also be accessed through the MAven app.
Money Can Be Used in a Medical Emergency
NPS Swasthya also provides support in cases of critical illness or major medical emergencies.
If a serious medical condition leads to high treatment costs, the subscriber may be able to withdraw the entire eligible deposit for treatment, subject to the scheme’s conditions.
One notable feature is that the treatment amount will be transferred directly to the hospital or its associated service provider.
If any money remains after the medical bill is paid, the unused amount will be returned to the subscriber’s NPS account.
Who Can Use NPS Swasthya?
Indian citizens between 18 and 85 years of age can avail themselves of the scheme, subject to the applicable conditions.
Subscribers will also need to provide a health declaration when joining the facility.
As of March 29, 2026, NPS and its associated systems had around 9.64 crore subscribers, managing approximately ₹16.55 lakh crore in assets.
With medical treatment becoming increasingly expensive, NPS Swasthya could provide subscribers with an additional financial option during health emergencies while continuing to support their long-term retirement planning.
