NPS Swasthya: Withdraw 25% for Your Health Bills?

PFRDA has launched NPS Swasthya, a scheme that combines your NPS retirement savings with a super top-up health insurance plan. You can now partially withdraw up to 25% of your own contributions for medical emergencies — a big deal for retirement planning.

Here's what happened: PFRDA released official guidelines for NPS Swasthya, a new variant that pairs NPS retirement investment with a super top-up health insurance policy under one umbrella.. Subscribers can make partial withdrawals of up to 25% of their own contributions for qualifying medical expenses after completing at least 3 years in the NPS scheme.. The scheme works as a top-up layer over a base health policy, meaning a primary health insurance plan must already be in place before NPS Swasthya's coverage activates..

What you should do: Check your existing NPS balance and calculate 25% of your personal contributions — that is the maximum medical buffer now available to you under partial withdrawal rules.. Compare NPS Swasthya's premium and charges against standalone super top-up health plans on an insurance aggregator before opting in, since costs can vary significantly.. Confirm you have an active base health insurance policy first — NPS Swasthya's cover will not trigger without one, so do not treat it as your only health safety net..

Partial NPS withdrawals for illness were already permitted under existing rules — NPS Swasthya adds a structured insurer tie-up on top, but the 25% cap and 3-year lock apply to both.

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