The Pension Fund Regulatory and Development Authority (PFRDA) launched the second proof of concept (under regulatory sandbox) of NPS Swasthya, an initiative intended to provide healthcare funding along with retirement planning.
The initiative, which was launched in Bengaluru on April 8 in partnership with some private insurance companies, would address a growing gap in India’s retirement landscape, where healthcare costs are projected to rise by 11.5%–14% in 2026, significantly outpacing inflation and putting long-term financial security under pressure for millions, according to industry experts.
“The launch 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 ₹16,55,655 crore (as of March 29, 2026),” said Sivasubramanian Ramann, Chairperson, PFRDA.
Currently, 10% of the country’s population is in the senior citizen category. This demographic is expected to climb to over 20% by the year 2045-50, he said emphasising the importance of medical insurance. “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,” he added.
