Big changes are coming to the National Pension System, and they could make retirement planning much easier — and more rewarding.
The Chairman of the Pension Fund Regulatory and Development Authority (PFRDA), Sivasubramanian Raman, has announced several new features.
These updates aim to combine pension benefits with health support and make account opening faster than ever.
Here’s what you need to know.
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Pension + Health Insurance in One Plan
Three pension fund companies are now working on plans that will offer both pension and health cover together.
This health cover may be provided:
In partnership with insurance companies
Directly through hospitals and healthcare networks
In addition, NPS accounts will soon include a special “Health Box.”
This feature will allow subscribers to use part of their NPS funds as a top-up for health insurance during hospital treatment.
It is especially helpful for senior citizens who often struggle to get new health insurance because of age restrictions.
This move could bring major financial relief during medical emergencies.
Open NPS Account Using UPI in Just 3 Steps
Opening an NPS account may soon become as simple as making a UPI payment.
According to Raman, users will be able to scan a QR code and open their National Pension System (NPS) account in just three steps.
With over 80 crore users on the National Payments Corporation of India (NPCI) UPI platform, most people already have their KYC verified through banks.
This means:
No lengthy paperwork
No repeated verification
Faster digital onboarding
NPS integration with UPI and third-party apps could significantly increase participation, especially among self-employed individuals.
More Flexible Pension Options
Subscribers will soon get two choices at the time of retirement.
Those who do not want to purchase an annuity may instead opt for a pension payout option with a minimum assured return.
To attract more self-employed professionals, PFRDA has introduced:
Easy entry options
Multiple scheme frameworks
The new Health Box feature
UPI-based access
These changes aim to make NPS more flexible and user-friendly.
Banks Showing Strong Interest
The “Multiple Scheme Framework” launched in October is already receiving a strong response.
Large banks are viewing NPS distribution as a profitable opportunity.
As more banks actively promote it, the number of subscribers is expected to grow rapidly.
PFRDA is also exploring new investment options such as real estate and project finance, similar to Alternative Investment Funds (AIFs).
All these updates signal one clear message: NPS is evolving into a more accessible, flexible, and health-supportive retirement system.