Medisave Limit 2026: How the January 2027 BHS Increase Will Affect Your ISP Premium Deductions
BHS stands at $79,000 in 2026 — here’s what changes when CPF announces January 2027’s figure in December 2026.
The Medisave limit for 2026 is $79,000 — this is the Basic Healthcare Sum (BHS) set annually by CPF. Every January, CPF raises the BHS, and this directly affects how much Medisave you can use toward your Integrated Shield Plan (ISP) premiums. This guide explains how the BHS and Additional Withdrawal Limits (AWL) work together, and what Singapore residents should prepare for when the January 2027 BHS figure is announced in December 2026.
Not financial advice. All figures are for educational reference only. Data verified against official CPF sources as at November 2026 unless otherwise noted.
What Is the Medisave Limit (BHS)?
The Basic Healthcare Sum (BHS) is the cap on how much you can keep in your Medisave Account (MA) beyond the age of 65. It is set by CPF each year and adjusted upward in January to keep pace with rising healthcare costs in Singapore. For 2026, the BHS is $79,000, up from $75,500 in 2025.
When CPF uses the term “Medisave limit”, it most commonly refers to the BHS. If your Medisave Account balance exceeds the BHS at age 65, the excess flows into your Retirement Account (RA) or Special Account (SA). Before age 65, there is no BHS — your Medisave can grow without a cap, though contribution rates and annual limits still apply.
For working Singaporeans and PRs holding an Integrated Shield Plan, the BHS matters for two reasons. First, as a signal of how CPF views the trajectory of lifetime healthcare costs. Second, as the reference point against which the Additional Withdrawal Limits (AWL) — the capson how much of your Medisave can pay for the private insurance component of an ISP — are calibrated.
If you are researching how to grow your CPF balances strategically, see our guide to CPF investment strategy for the broader picture.
BHS History 2016–2026: The Annual Trajectory
The BHS has risen every year since CPF introduced it in 2016. The table below shows the full history of the BHS — that is, the BHS that applies to those who turned 65 in that year. If you have already turned 65, your BHS is locked at the level for the year you turned 65; it does not increase for you after that point.
| YYXR Turned 65 | Basic Healthcare Sum (BHS) | Year-on-Year Change |
|---|---|---|
| 2016 or earlier | $49,800 | — |
| 2017 | $52,000 | +$2,200 |
| 2018 | $54,500 | +$2,500 |
| 2019 | $57,200 | +$2,100 |
| 2020 | $60,000 | +$2,100 |
| 2021 | $63,000 | +$3,000 |
| 2022 | $66,000 | +$3,000 |
| 2023 | $68,500 | +$2,100 |
| 2024 | $71,500 | +$3,000 |
| 2025 | $75,500 | +$4,000 |
| 2026 | $79,000 | +$3,500 |
Source: CPF Board — Basic Healthcare Sum, November 2026.
Over ten years, the BHS has grown by 59% — from $49,800 to $79,000. The average annual increase is approximately $2,100. This steady upward trajectory reflects Singapore’s growing healthcare costs and CPF’s aim to ensure members have sufficient Medisave savings to meet hospitalisation and outpatient costs in old age.
How ISP Premiums Are Paid from Medisave
An Integrated Shield Plan in Singapore consists of two separate components, and understanding this split is essential to knowing how much Medisave you can actually use.
Component 1: MediShield Life
MediShield Life is the base government health insurance administered by the CPF Board. Its premiums are paid entirely from your Medisave Account — there is no cash component and no cap beyond your Medisave balance. MediShield Life premiums increase with age; for example, a 40-year-old pays around $345 per year while a 65-year-old pays roughly $1,190 per year.
Component 2: Private Insurance Top-Up
The private insurance component is provided by commercial insurers (AIA, Prudential, Great Eastern, NTUC Income, Raffles Health Insurance, AXA, Aviva). This component upgrades your coverage — typically to Class A wards or private hospital rooms, with better annual limits and rider options.
This private component is also deducted from Medisave, but it is subject to the Additional Withdrawal Limits (AWL). The AWL caps how much of the private component you can pay from Medisave each year, based on your age next birthday. If your private component premium exceeds the AWL, you must pay the balance in cash.
For a broader analysis of ISP options and cost considerations, see our detailed look at when to consider downgrading your ISP base plan.
Additional Withdrawal Limits (AWL): The Annual Medisave Cap on ISP Private Premiums
The Additional Withdrawal Limits (AWL) determine the maximum Medisave you can withdraw per year for the private insurance component of your ISP. These limits are age-banded based on your age next birthday.
| Age Next Birthday | AWL Per Year (ISP Private Component) |
|---|---|
| 1 – 40 | $300 |
| 41 – 70 | $600 |
| 71 and above | $900 |
Source: CPF Board — Using Medisave for Insurance, November 2026.
These AWL amounts apply to the private insurance component only — remember, MediShield Life premiums are always paid in full from Medisave regardless of the AWL.
ISP premiums generally increase as you age, often significantly after 65. At the same time, the AWL also increases to $900 at age 71. This means older Singaporeans have proportionally more Medisave coverage for their ISP private component, though many premium schedules still exceed the $900 AWL at advanced ages.
Worked Examples: How Much Can You Deduct from Medisave?
To make this concrete, here are three scenarios based on a standard ISP with Class A ward coverage.
Example 1: Sarah, age 35 next birthday
- MediShield Life premium: $340 (fully from Medisave)
- ISP private component premium: $450
- AWL at age 1–40: $300
- Medisave deduction: $340 (MediShield Life) + $300 (AWL portion of private)
- Cash top-up required: $450 – $300 = $150 per year
Example 2: James, age 55 next birthday
- MediShield Life premium: $820 (fully from Medisave)
- ISP private component premium: $1,100
- AWL at age 41–70: $600
- Medisave deduction: $820 (MediShield Life) + $600 (AWL portion of private)
- Cash top-up required: $1,100 – $600 = $500 per year
Example 3: Linda, age 72 next birthday
- MediShield Life premium: $1,440 (fully from Medisave)
- ISP private component premium: $2,800
- AWL at age 71 and above: $900
- Medisave deduction: $1,440 (MediShield Life) + $900 (AWL portion of private)
- Cash top-up required: $2,800 – $900 = $1,900 per year
Note: Premium figures in these examples are illustrative approximations based on published insurer schedules as at late 2026. Actual premiums vary by insurer, plan tier, and individual health history.
To model your own retirement healthcare costs alongside other CPF-related expenses, our Singapore retirement calculator is a useful starting point.
What to Expect When the January 2027 BHS Is Announced
The 2027 BHS has not yet been announced as of November 2026. CPF typically releases the new BHS figure in December of the preceding year, with the new amount taking effect on 1 January of the following year.
Based on the historical trajectory, the 2027 BHS is likely to be in the range of $82,000–$84,000 — though CPF does not pre-announce this figure, and the actual amount depends on healthcare cost projections and CPF’s actuarial review.
Does the 2027 BHS Change Your AWL?
The AWL amounts ($300, $600, $900) are not automatically revised each year alongside the BHS. As of November 2026, the same AWL table above applies for 2027. If AWL changes are made, CPF typically gives advance notice.
Does the 2027 BHS Change Your Medisave Top-Up Strategy?
If you are below 65 and making voluntary Medisave contributions, the new BHS may affect how much headroom you have. At age 65, the BHS becomes your cap — Medisave contributions that push you above the BHS will overflow to your RA or SA instead.
For a full overview of how the BHS fits into your overall Medisave planning, see our comprehensive guide to the Medisave limit for 2026.
Action Plan: What to Do Before January 2027
1. Verify your current ISP premium breakdown
Contact your insurer or check your policy documents to confirm exactly how much of your annual premium is the MediShield Life component versus the private insurance component. Only the private component is subject to the AWL.
2. Calculate your AWL gap
Using the AWL table above, check whether your private component premium exceeds your AWL. If it does, the difference must be paid in cash each year.
3. Check your Medisave balance
Log in to CPF Online Services to verify your Medisave Account balance. If you are approaching the BHS and are still below 65, consider whether you are over-contributing to Medisave versus building up your SA or RA for retirement income.
4. Watch for the December 2026 announcement
CPF will announce the 2027 BHS in December 2026. If you are turning 65 in 2027, the new figure directly determines your Medisave cap going forward. The Kopi Notes will update this article as soon as the 2027 BHS is confirmed.
5. Review your plan tier before the renewal date
Premium increases on renewal are common, especially after certain age thresholds. If your ISP private component is significantly above your AWL and the cash top-up is growing unmanageable, consider whether downgrading to a lower-tier plan or switching insurers makes sense.
Disclaimer: This article is for educational purposes only and does not constitute financial, insurance or legal advice. ISP suitability depends on your individual health situation, financial position, and risk tolerance. Please consult a licensed financial adviser before making any changes to your health insurance coverage.
Frequently Asked Questions
What is the Medisave limit for 2026?
How much can I withdraw from Medisave for my Integrated Shield Plan?
What happens if my ISP premium exceeds the AWL?
When will the 2027 BHS be announced?
Does the BHS increase affect how much I can claim from MediShield Life?
Can I use Medisave to pay ISP premiums for my dependants?
Is the co-payment rider premium also deductible from Medisave?
Plan Smarter for Your Healthcare Costs
Understanding how the BHS and AWL work together helps you budget accurately for your ISP premiums year by year.
- Complete Medisave limit 2026 guide — BHS, contribution rates, and withdrawal rules
- When to downgrade your ISP base plan — saving on premiums without sacrificing critical coverage
- Singapore retirement calculator — factor in healthcare costs alongside your CPF projections
- CPF investment strategy — build your CPF balances strategically for retirement
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This article was researched with the help of AI. While we strive to keep all information accurate and up to date, there may be errors. If you notice any discrepancies, please contact us.
