Basic Healthcare Sum 2022

Basic Healthcare Sum

The basic healthcare sum (BHS) will increased from S$63,000 in 2021 to S$66,000 in 2022. This means that I have to prepare S$3,000 in cash to top up my MediSave Account (MA) in January 2022.

What is the Basic Healthcare Sum?

The Basic Healthcare Sum (BHS) is the estimated savings you need in your MediSave Account for your basic subsidised healthcare needs in old age.

If you are below the age of 65

The Basic Healthcare Sum (BHS) will be adjusted annually to keep pace with the expected growth in MediSave use by the elderly.

If you turn 65 in 2022

If you are turning 65 years old in 2022, the Basic Healthcare Sum (BHS) will be fixed for the rest of your live at 66K.

Benefits of Maxing Out your MediSave Account

With the increase in limit for the basic healthcare sum (BHS), we can take the opportunity to top up our MediSave Account (MA) using cash.

You might ask why do we even bother to top up our MediSave Account using cash?

There are several benefits of hitting the limit (S$66,000) of your Medisave Account:

  1. Tax rebates if you use cash to top up your MediSave Account (MA).
  2. If you have hit the max of your MediSave Account (MA) at S$66,000, your monthly CPF contribution from your salary and employer gets overflown over to your Special Account (SA). The Special Account (SA) earns you a higher interest of 4% per annum. If you are worried that the government will lower the interest rates, fear not. The 4% floor rate for interest earned on all Special, MediSave and Retirement savings will be extended until 31 December 2022. If your Special account (SA) have met the Full Retirement Sum (FRS), the monies will overflow to your Ordinary Account (OA) which earns you a 2.5% interest rate per annum.

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