Singapore’s healthcare financing system is anchored by the Central Provident Fund (CPF), which ensures citizens can meet both retirement and medical needs. Within CPF, the MediSave Account plays a central role, and the Basic Healthcare Sum (BHS) sets the cap on how much one can hold in MediSave. This cap is reviewed annually to reflect changes in healthcare costs. For 2026, the Basic Healthcare Sum (BHS) will rise from $75,500 in 2025 to $79,000.
The Basic Healthcare Sum (BHS) represents the estimated savings required to cover basic subsidised healthcare needs in old age. It is designed to ensure that Singaporeans have sufficient funds for hospitalisation, outpatient treatments, and approved medical insurance premiums such as MediShield Life and CareShield Life. Once a member’s MediSave balance reaches the BHS, any excess contributions are redirected to the Special Account or Retirement Account, depending on age. This mechanism balances healthcare adequacy with retirement planning.
For CPF members below 65 in 2026, the Basic Healthcare Sum (BHS) will be set at $79,000. Those turning 65 in 2026 will have their Basic Healthcare Sum (BHS) fixed at $79,000 for life, meaning they will not face further adjustments in subsequent years. Members who turned 65 earlier will continue with the Basic Healthcare Sum (BHS) level applicable at that time. This approach provides stability and predictability, allowing individuals to plan their finances with greater certainty.
The increase reflects broader trends in healthcare. Medical inflation, driven by new technologies, treatments, and rising demand, has steadily pushed costs upward. Singapore’s ageing population also contributes to higher healthcare expenditure, as longer lifespans often mean more sustained medical care. Insurance premiums, which are payable from MediSave, have risen over time as well. Adjusting the BHS ensures that MediSave remains a reliable safeguard against these pressures.
For CPF members, the implications are straightforward. Younger workers will need to accumulate more in MediSave to meet the higher threshold, reinforcing the importance of disciplined savings. At the same time, once the BHS is reached, excess contributions flow into retirement accounts, strengthening overall financial security. The certainty of having the BHS fixed at age 65 provides reassurance, as individuals can plan without concern for further increases in later years.
The Basic Healthcare Sum (BHS) is part of a larger CPF framework that includes the Full Retirement Sum (FRS) and CPF LIFE. Together, these elements form a layered safety net: savings in MediSave and retirement accounts, insurance schemes such as MediShield Life and CareShield Life, and government subsidies for healthcare costs. This integrated system is designed to provide comprehensive protection against both healthcare and retirement risks.
In practical terms, CPF members should monitor their MediSave balances regularly. The CPF online dashboard offers a clear view of progress toward the BHS. Voluntary top‑ups may be useful for self‑employed individuals or those with irregular income streams. Once the Basic Healthcare Sum (BHS) is reached, excess contributions enhance retirement savings, ensuring that both healthcare and retirement needs are addressed. Staying informed about CPF adjustments is important, as these changes are announced annually and can affect long‑term planning.
The Basic Healthcare Sum (BHS) increase in 2026 is part of wider CPF adjustments. The monthly salary ceiling will rise to $8,000 from January 2026, allowing members to contribute more. Contribution rates for senior workers aged 55 to 65 will also increase, further strengthening retirement adequacy. Interest rates remain stable, with 2.5 percent for the Ordinary Account and 4 percent for the Special, MediSave, and Retirement Accounts. These measures reflect Singapore’s ongoing effort to balance present income with future security.
The Basic Healthcare Sum of $79,000 in 2026 is not simply a technical adjustment. It reflects the realities of rising healthcare costs and the need for adequate savings to meet them. For CPF members, understanding the Basic Healthcare Sum (BHS) and its role within the broader CPF system is essential for effective financial planning. By keeping track of these changes and planning accordingly, Singaporeans can navigate their healthcare and retirement journey with greater confidence.