The Enduring Role of Your MediSave Account After 55
Unlike the Special Account (SA), which closes for members aged 55 and above in 2025, your MediSave Account (MA) remains open and functional. Its fundamental purpose does not change; it is still your dedicated savings for healthcare needs. These savings can be used to pay for hospitalisation, approved medical treatments, and health insurance premiums, such as MediShield Life and Integrated Shield Plans. Your MA continues to earn the same long-term interest rate as the new Retirement Account (RA), ensuring your healthcare savings continue to grow tax-free.
The Basic Healthcare Sum (BHS): How It Works After 55
The Basic Healthcare Sum (BHS) is the estimated savings required for basic subsidised healthcare needs in old age. For members below age 65, the BHS is adjusted annually to keep pace with healthcare costs. A crucial change happens at age 65: your BHS will be fixed for the rest of your life.
When your MA balance reaches the BHS, several things occur:
- Your MA will not accumulate further contributions. Any subsequent mandatory or voluntary contributions that would normally go into your MA will be diverted.
- For working members, the excess contributions are allocated to your other CPF accounts, typically your Ordinary Account (OA), or your Retirement Account if your contributions previously went to the SA.
- Your existing MA balance, even if it exceeds the BHS due to interest accrual, will remain in the account for your healthcare use.
Understanding the Flow of Post-55 Contributions
Once you turn 55, the allocation of your CPF contributions changes, with a portion still directed to your MediSave Account. Your working contributions will be allocated to your OA, RA, and MA. The allocation to the MA will continue until your balance reaches the BHS. Once the BHS is met, the contributions that were meant for the MA will be channelled into your OA instead, ensuring your retirement savings continue to grow.
The Matched MediSave Scheme (MMSS) for Eligible Seniors
From 2026, eligible seniors aged 55 to 70 can benefit from the Matched MediSave Scheme (MMSS), a government initiative to bolster healthcare savings. The scheme works on a dollar-for-dollar matching basis for voluntary cash top-ups, up to $1,000 per year for five years. This can result in a total of $5,000 in matching grants, in addition to your own contributions.
Eligibility for the MMSS is based on several criteria, including income, property ownership, and your current MediSave balance. Eligible seniors will be automatically notified, simplifying the process and helping those who need it most to boost their healthcare nest egg.
Can You Withdraw MediSave Savings at 55?
Unlike your Ordinary and Retirement Accounts, which offer withdrawal flexibility after setting aside the FRS, MediSave savings cannot be withdrawn for general use at age 55 or any other age. This is a critical distinction and reinforces the purpose of the MA as a long-term fund for medical and healthcare expenses. The funds are reserved for approved medical expenses, which are essential for securing your health in your later years.
Comparing Accounts: MediSave (MA) vs. Retirement Account (RA)
Upon turning 55, understanding the distinct roles of your remaining CPF accounts is vital. The closure of the Special Account and the creation of the Retirement Account re-organises your savings, but your MediSave's purpose remains focused on healthcare.
| Feature | MediSave Account (MA) | Retirement Account (RA) |
|---|---|---|
| Primary Purpose | For healthcare needs, including hospitalisation, approved medical treatments, and insurance premiums. | For retirement payouts, providing a steady stream of monthly income in your golden years. |
| Contribution Flow | Receives contributions until the Basic Healthcare Sum (BHS) is reached. | Created at age 55, receiving transfers from SA/OA up to the Full Retirement Sum (FRS). |
| Withdrawal | No general withdrawals allowed. Funds are reserved for approved medical expenses. | Allows partial or full withdrawals of excess funds (above FRS) from age 55. |
| Interest Rate | Earns a long-term, attractive interest rate, with extra interest earned on combined balances. | Earns the same long-term interest rate as the former SA, with extra interest earned on combined balances. |
Actionable Steps for Effective Financial Planning After 55
As you reach and pass the age of 55, take these steps to make the most of your CPF savings:
- Review your Retirement Dashboard: Log in to your CPF digital services to see an overview of your accounts, including your MediSave balance and how much has been transferred to your RA.
- Monitor your BHS: Keep track of your Basic Healthcare Sum. If you are a working adult and have met the BHS, contributions will be redirected to your OA, which you may choose to transfer to your RA for higher retirement payouts.
- Consider Voluntary Top-Ups: If your MA balance is below the BHS, and you are eligible, consider making voluntary cash top-ups, especially through the Matched MediSave Scheme, to take advantage of government grants.
- Explore Investment Options for OA: With the closure of the SA, any excess savings are transferred to your OA. If you do not have immediate plans to withdraw this cash, consider investing it under the CPF Investment Scheme (CPFIS-OA) to potentially earn higher returns than the standard OA interest rate. You can find more information here: CPF Board website.
Conclusion: Navigating Healthcare Savings with Confidence
Turning 55 marks a new chapter for your CPF accounts, but the core function of your MediSave Account remains constant and vital. It continues to grow through contributions and attractive interest rates, securing your healthcare funding for life. By understanding the Basic Healthcare Sum, the flow of contributions, and schemes like the MMSS, you can confidently manage your finances and focus on a healthy, worry-free retirement.
