Using Medisave account for CPF-Investments. Wait, what? You could do that?

Many Singaporeans are unaware that their Medisave accounts could potentially be used for CPF-Investments. Of course, just like any other scheme from our government, there is a catch.

The only way you could do so is if your Medisave account has achieved the Basic Healthcare Sum or BHS.
The BHS for the year 2018 is $54,500.

In short, you need to have at least $54,500 in your Medisave account.





Extract from CPF Website

Once you’ve a minimum of $54,500 in your Medisave, whatever CPF contributions you make will go to your CPF Ordinary Account or CPF Special Account, allowing you to do whatever you want with it. You could choose to let it sit in there for your retirement, or you could choose to use it for your own desired investments.

It is, however, less common for the average Singaporean to be able to hit the BHS in their early adult life, so by the time they do, they should probably be in their mid-30s or even early 40s.

Since most Singaporeans use the Medisave account for their Integrated Shield Plans or ElderShield Scheme upgrades, it further reduces the likelihood that one will meet the BHS. Moreover, some even pay for their dependents’ Integrated Shield Plans.
Watch this video by CPF on how people usually use their MediSave:


Do take note that the BHS is adjusted yearly if you’re below the age of 65, just like the Retirement Sum that the CPF has imposed.

For the year 2019, it was recently stated in a press release that the new BHS will be increased from $54,500 to $57,200.

Have you achieved your BHS yet?

What do you think?

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