By: Leong Sze Hian
Basic Healthcare Sum increased to $52,000
The Medisave Contribution Ceiling (MCC) was renamed as the Basic Healthcare Sum (BHS) in January 2016. The Government says that the BHS is the estimated savings that you need for your basic subsidised healthcare needs in old age. The BHS has been increased from $49,800 to $52,000, from 1 January 2017.
Was it announced in media?
I don’t remember reading about this increase in the mainstream media. Did you?
4.4% increase in 1 year?
So, the BHS increased by $2,200 or about 4.4 per cent in one year.
Cohort basis changed to age 65?
As the BHS is on a cohort basis at age 65 – it will not increase for those who are 65 years old.
I believe this is a departure from past cohort based CPF schemes’ amounts which I understand has always been at age 55.
So, why the apparent change now?
Was this announced in the mainstream media or in Parliament?
$346,000 BHS when you are 65?
If you are say 21 years old now – can you imagine what your BHS may be when you are 65? ($345,800 ($52,000 compounded at 4.4 per cent for 44 years?))