SINGAPORE – The Basic Healthcare Sum for 2022 will be raised from $63,000 to $66,000 for Central Provident Fund (CPF) members under 65.
This will take effect from Jan 1 next year, the CPF Board said in a joint statement with the Ministry of Health and the Housing Board (HDB) on Friday (Nov 26).
The Basic Healthcare Sum is the estimated savings required for basic subsidised healthcare needs in one’s old age.
It is adjusted yearly for members below 65 years of age to keep pace with the growth in MediSave withdrawals. Once members reach the age of 65, the sum will be fixed for the rest of their lives.
Those who turn 65 next year will have the sum fixed at $66,000 and it will not be changed.
Those who are 66 and above next year will see no changes to their cohort’s Basic Healthcare Sum.
The CPF Board announced in September that the minimum 4 per cent interest rate for Special, MediSave and Retirement account monies had been extended until Dec 31 next year.
On Friday, it said that in the first quarter of 2022, CPF members below 55 years of age will continue to earn up to 5 per cent interest on the first $60,000 of their combined balances, with up to $20,000 from the Ordinary Account.
They will earn interest rates of up to 3.5 per cent a year on their Ordinary Account monies and up to 5 per cent a year on their Special and MediSave account monies.
CPF members aged 55 and above will be paid 6 per cent interest a year on the first $30,000 of their combined balances, with up to $20,000 from the Ordinary Account. They will also be paid 5 per cent on the next $30,000.
The extra interest on a member’s Ordinary Account will go into their Special Account or Retirement Account to enhance their retirement savings.
If a member is above 55 and participates in the CPF Life scheme, the extra interest will still be earned on their combined balances, including savings used for CPF Life.
CPF Life is an annuity scheme that provides a lifelong monthly payout that kicks off when the member becomes 65 years old.
The interest rate for Ordinary Accounts will be maintained at 2.5 per cent a year from Jan 1 to March 31 next year.
The concessionary interest rate for HDB housing loans, which is pegged at 0.1 percentage point above the Ordinary Account interest rate, will remain unchanged at 2.6 per cent a year during the same period.
For Special and MediSave accounts, interest rates will be maintained at 4 per cent a year until March 31 next year.
The Retirement Account interest rate will also be maintained at 4 per cent a year until Dec 31 next year.