NPS Swasthya Equity Plus: Grow your retirement corpus, access funds for health with ICICI Pension Fund’s new bet

ICICI Pension Fund Management Limited, a wholly owned subsidiary of ICICI Bank, has introduced ‘ICICI PF NPS Swasthya Equity Plus’, a differentiated offering under the National Pension System (NPS) that aims to address two critical investor concerns — long-term retirement accumulation and rising healthcare costs.

Launched under the PFRDA Regulatory Sandbox Framework as a Proof of Concept (PoC), the scheme is positioned as a hybrid retirement solution that allows controlled liquidity for medical expenses without compromising the long-term growth trajectory of the corpus. The launch was attended by Shri Sivasubramanian Ramann, Chairperson, Pension Fund Regulatory and Development Authority (PFRDA), along with representatives from ICICI Pension Fund, Apollo HealthCo and KFin Technologies.

From an asset allocation perspective, the scheme adopts a growth-oriented stance. Between 70% and 100% of the corpus will be invested in equities, with up to 30% in debt instruments and up to 10% in money market instruments. This structure makes it suitable for investors with a higher risk appetite seeking capital appreciation over the long term within the NPS framework.

The distinctive feature, however, lies in its conditional withdrawal flexibility. Subscribers can withdraw up to 25% of their own contributions for healthcare-related expenses — including OPD, diagnostics, hospitalisation and pharmacy purchases — through the Apollo 24|7 platform and selected Apollo network facilities. Importantly, the remaining corpus continues to remain invested, preserving the compounding potential of retirement savings.

Partial withdrawals are permitted after accumulation of at least ₹50,000, with no cap on the number of withdrawals once eligible. In extreme cases, where medical expenses exceed 70% of the accumulated corpus, up to 100% withdrawal is allowed under the emergency exit provision.

Sivasubramanian Ramann said the initiative reflects a broader evolution in pension design. “At PFRDA, our vision of old-age security is rooted in comprehensive planning that begins early and evolves with life’s changing vulnerabilities. With initiatives such as NPS Vatsalya and now this health-focused pension framework under the regulatory sandbox, we are exploring innovative ways to strengthen citizens’ financial preparedness. This initiative does not replace insurance; rather, it complements it by creating a disciplined, purpose-driven savings pool dedicated to healthcare needs.”

For investors, the product effectively creates a ring-fenced healthcare buffer within a retirement vehicle, reducing the need to prematurely liquidate other long-term investments during medical emergencies.

Sumit Mohindra, CEO, ICICI Pension Fund Management Limited, stated that increasing longevity and healthcare inflation necessitate retirement products that integrate contingency planning. The operational framework is supported by KFintech as the Central Recordkeeping Agency, ensuring compliant, rule-based processing and secure fund transfers directly to the Apollo network.

In addition to liquidity features, subscribers receive preferential healthcare benefits across the Apollo ecosystem, including discounts on pharmacy orders, diagnostics, consultations and hospital services.

Investors can open the scheme through ICICI Pension Fund’s website or the Apollo 24|7 app. As mandated by PFRDA regulations, maintaining a Common Scheme NPS account alongside the NPS Swasthya account is compulsory.

For long-term investors evaluating retirement products, NPS Swasthya Equity Plus offers an equity-heavy accumulation strategy with embedded healthcare liquidity — a structure designed to balance growth and resilience.