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CPF 2026 update: BHS rises to $79,000 for under‑65s — Q1 interest floors and extra interest explained

ByBrian

Good news (or at least something to take note of) if you’re tracking your CPF moves: the Basic Healthcare Sum (BHS) is getting a bump from $75,500 to $79,000 — but only for members who will be under 65 on Jan 1, 2026. The CPF Board, Ministry of Health and HDB announced the change on Dec 15, and there are some other interest-rate details for the start of 2026 that are worth knowing. Here’s a friendly, plain-language breakdown of what’s changing, why it matters, and what you might want to do next.

What’s changing and when

Effective Jan 1, 2026:

  • The Basic Healthcare Sum (BHS) for CPF members under 65 will rise from $75,500 to $79,000.
  • For those aged 66 and above in 2026, the BHS stays the same — no change.

On top of that, the CPF interest-rate settings for the first quarter of 2026 are confirmed:

  • SMRA (Special, MediSave and Retirement Account) interest rate: floor rate of 4.0% p.a. from Jan 1 to Mar 31, 2026.
  • Ordinary Account (OA) interest rate: floor rate of 2.5% p.a. for the first quarter of 2026.
  • Concessionary HDB loan rate, which is OA + 0.1%: remains at 2.6% p.a.

Extra interest — who gets what?

The Government continues its approach of giving extra interest boosts to help with retirement savings. The breakdown:

  • If you’re below 55: an extra 1% interest on the first $60,000 of your combined CPF balances. Note: the extra for the Ordinary Account (OA) is capped at $20,000 of OA balance.
  • If you’re 55 and above: an extra 2% on the first $30,000 of combined balances (OA cap still $20,000), plus an extra 1% on the next $30,000.

Two practical points about this extra interest:

  • Extra interest credited on OA will be transferred into your Special Account (SA) or Retirement Account (RA) — it’s a nudge to build long-term savings for retirement and healthcare.
  • If you’re 55+ and in CPF Life, extra interest earned will remain in your combined balances, which include the savings earmarked for CPF Life.

Why does the BHS increase matter?

The BHS is essentially the limit used for MediSave balances — it’s the notional amount set aside for future healthcare needs (hospitalisation, chronic conditions, etc.). Raising the BHS has a few consequences:

  • It allows members under 65 to hold a slightly higher MediSave balance for healthcare needs.
  • It can affect how much you can withdraw or transfer between accounts in some situations, and the calculation for what remains available for healthcare coverage.
  • For those planning long-term healthcare coverage or budgeting for retirement health costs, a higher BHS means setting aside more in your MediSave pool is considered appropriate by policy.

If you want the official, nitty-gritty info, the CPF Board has a page for the Basic Healthcare Sum at cpf.gov.sg/BHS.

Quick examples to make this concrete

Example 1 — Extra interest for under-55:

If you have a combined CPF balance of $50,000 and you’re under 55, you get the extra 1% on the first $50,000. If part of that is in OA, the OA portion that benefits is limited to $20,000 — any extra interest credited to OA will be moved to SA/RA.

Example 2 — For 55+:

Say you’re 60 with combined CPF savings of $70,000. You get 2% extra on the first $30,000, and 1% extra on the next $30,000 — the remaining $10,000 doesn’t get extra top-up interest. Again, OA’s extra portion is capped at $20,000 and will be credited to SA/RA as needed.

CPF Life reminder

If you’re in CPF Life (the annuity-style scheme that gives you lifelong monthly payouts starting at 65), know that extra interest is treated a bit differently: for participants aged 55+ who are in CPF Life, the extra interest remains in their combined balances — and that includes the savings that go toward CPF Life. In short: it helps the pot that funds lifelong payouts.

What you should do now

Bottom line

The BHS nudges up a bit for those under 65 in 2026, and the interest-rate floors for the start of 2026 have been maintained. For most people the change is administrative — a slight increase in the healthcare cap — but combined with the guaranteed extra interest boosts, it’s another small step by the Government to keep retirement and healthcare savings moving in the right direction.

If you want to dig into the official details or see how the numbers play out for you, check the CPF website or reach out to the CPF Board. Small changes like this can add up over time, so it’s worth a quick look.

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