Bold headline: CPF interest rates stay steady in Q1 2026, while Basic Healthcare Sum rises to S$79,000.
A sneak peek: Despite shifts in healthcare costs and retirement planning, Singapore’s CPF members will see no changes to interest rates in the first quarter of 2026, even as the Basic Healthcare Sum (BHS) increases. Here’s what that means for savers and planners alike—and why it matters for your retirement strategy.
What stays the same
- Ordinary Account (OA) interest rate remains at 2.5% per year. The current rate remains above the floor rate, so there’s no adjustment.
- The concessionary interest rate for Housing & Development Board (HDB) housing loans stays at 2.6% per year, pegged 0.1 percentage point above the OA rate.
- Special, MediSave, and Retirement Accounts (SMRA) maintain a 4% annual interest rate.
- The SMRA pegged rate, calculated as the 12-month average yield of 10-year Singapore Government Securities plus 1%, remains below the 4% floor, so no change is needed.
Extra interest boosts for retirement savings
To support longer-term retirement resilience, the CPF will continue the extra-interest mechanism on balances held across CPF accounts:
- For members under 55: the first S$60,000 of combined balances earns an additional 1% interest (OA portion capped at S$20,000).
- For members 55 and older: the first S$30,000 of combined balances earns an extra 2% interest, and the next S$30,000 earns an additional 1%.
Any extra OA interest gained is credited to the Special or Retirement Account.
Basic Healthcare Sum (BHS) update for 2026
- For members below 65, the estimated MediSave savings required for basic subsidised healthcare in old age will rise from S$75,500 to S$79,000 starting Jan 1, 2026.
- The BHS is reviewed annually to keep pace with rising healthcare costs.
- For those turning 65 in 2026, the BHS is fixed at S$79,000 for the remainder of their lives.
- Members aged 66 and above in 2026 are unaffected, as their cohort’s BHS remains fixed.
Why this matters
Even when interest rates hold steady, the combination of a higher BHS and ongoing extra-interest incentives can affect savings planning and future healthcare affordability. The fixed BHS for new 65-year-olds means a higher baseline for healthcare planning in retirement, while the preserved OA and SMRA rates provide continuity for long-term growth and security.
If you’re navigating CPF planning right now, consider how your current balances and age category interact with the extra-interest rules. For example, younger savers should map how the 1% extra on the first S$60,000 could compound over time, while those nearing or in retirement should model adjustments to healthcare budgeting given the new S$79,000 BHS.
What do you think about these adjustments? Do you believe the combination of steady interest rates and a higher BHS effectively balances today’s healthcare costs with long-term retirement savings, or would you prefer more aggressive changes to either side? Share your perspective in the comments.
