A big and useful initiative has come to the fore for the subscribers of National Pension System (NPS). PFRDA has launched a new scheme named NPS Health Pension Scheme, which aims to cover healthcare expenses through pension savings. The amount deposited in this scheme can be used for expenses like doctor’s fees, medicines and hospitalization. That means NPS money will now help not only after retirement but also during illness. This scheme is completely voluntary and is currently being tested in the sandbox system as a pilot project. Withdrawal facility up to 25% has been provided for normal medical needs and up to 100% in cases of serious illness. In the era of increasing medical inflation, this scheme is being considered an important step towards strengthening both health and financial security.

To secure the financial future of children, the government has issued new guidelines for NPS Vatsalya Scheme, which came out in the circular of PFRDA dated January 7, 2026. Under this scheme announced in the Union Budget 2024-25, parents and guardians can open pension accounts in the name of their minor children, so that retirement planning can start from an early age. It has the facility of investment with minimum annual contribution. Asset allocation is flexible, allowing up to 75% investment in equities, as well as options in government securities and corporate bonds. Limited partial withdrawal is possible for educational or medical needs. At the age of 18 years, the account can be converted into regular NPS or exit can be taken. Experts consider it a strong way of long-term disciplined savings.