The Central Provident Fund (CPF) Board in Singapore has made significant updates for 2025. Effective from 1 January to 31 March 2025, changes have been implemented regarding CPF interest rates and the Basic Healthcare Sum (BHS). CPF members below 55 will enjoy an additional 1% interest on the first $44,416 of their combined balances. Those 55 and above will receive an extra 2% on the first $22,208 and 1% on the next $22,208. The Special, MediSave, and Retirement Accounts maintain a 4% guaranteed floor rate, while the Ordinary Account holds at 2.5%.
The BHS has also seen an upward shift. For members under 65, it will rise from $52,929 to $55,890. Those turning 65 in 2025 will have a fixed BHS of $55,890 for life. CPF members can contribute to their MediSave Account up to the BHS, with excess contributions being redirected to other accounts. Importantly, members with balances below the BHS are not obligated to make top-ups and can still withdraw for approved medical costs.
These adjustments are set to have a far-reaching impact on CPF members. The interest rate changes aim to boost savings, while the BHS modifications are likely to influence healthcare planning and financial management for individuals. The CPF Board’s announcements provide clarity and guidance for members to better understand and adapt to these new financial parameters in the coming year.
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