Bold Summary: CPF members can expect steady interest rates in Q1 2026, while the Basic Healthcare Sum (BHS) rises to S$79,000 for those under 65. But here’s where it gets controversial: do these tweaks adequately protect savers in an aging nation struggling with rising healthcare costs?
Singapore’s Central Provident Fund (CPF) balance and healthcare framework are due for updates in the first quarter of 2026. A joint statement from the CPF Board, the Housing & Development Board (HDB), and the Ministry of Health (MOH) confirms that interest rates across all CPF accounts will stay at their current floor levels from January 1 to March 31, 2026. Specifically, the Ordinary Account (OA) will continue to earn 2.5% per year, since the pegged rate remains below this floor.
The housing loan concessionary rate, which sits 0.1 percentage points above the OA rate, will likewise stay at 2.6% per year.
For the Special, Medical Savings, and Retirement Accounts (SMRA), the interest rate remains at 4% per year. Officials note that the SMRA pegged rate—calculated as the 12-month average yield of 10-year Singapore Government Securities plus 1%—is currently below the 4% floor.
To bolster retirement savings, the government will keep the extra interest mechanism on CPF balances. Here’s how it works:
- Members under 55 will earn an additional 1% interest on the first S$60,000 of their combined balances (with the OA portion capped at S$20,000).
- Members 55 and older will earn an extra 2% on the first S$30,000 of combined balances, plus an extra 1% on the next S$30,000.
Any extra OA interest will be credited to the member’s Special or Retirement Account.
Basic Healthcare Sum (BHS) for 2026
The BHS, which represents the estimated MediSave savings required to cover basic subsidised healthcare in old age, will be adjusted upward. From January 1, the BHS for members under 65 rises from S$75,500 to S$79,000. The BHS is indexed annually to reflect increasing healthcare costs and consumption.
For those turning 65 in 2026, the BHS is fixed at S$79,000 for life. Members aged 66 and above in 2026 are not affected, as their cohort’s BHS remains fixed.
Bottom line: If you’re under 65, plan for a higher BHS next year and keep in mind that CPF interest on OA, SMRA, and the extra-interest framework remains steady through Q1 2026. The policy aims to strengthen retirement readiness, but debates continue about whether the BHS increase fully aligns with actual healthcare needs and whether the extra interest adequately compensates for inflation. What’s your take on balancing retirement savings growth with rising healthcare costs? Share your views in the comments.
