Guide to CPF Basic Healthcare Sum (BHS) Projection

This Opinion post first appeared in my blog here: https://pwlcm.wordpress.com/2022/03/28/guide-to-cpf-basic-healthcare-sum-bhs-projection/

Refer to the list of acronyms on CPF in the following blog posts: https://pwlcm.wordpress.com/2022/01/06/acronym-cpf/

I am a CPF Volunteer. If you find this blog post providing useful information about CPF matters and it leads you to using CPF online services, you may fill in my full name “Tan Choong Hwee” in the “Referrer Name” field in some selected CPF online services.

In my blog post “Guide to CPF Retirement Sums Projection“, I have done a projection on the various retirement sums (BRS/FRS/ERS). This blog post I attempt to perform the same projection on another CPF sum, the Basic Healthcare Sum (BHS).

Mathematical Formula for CPF BHS

Unlike the retirement sums, I could not find the historical data on BHS from the government dataset portal. The following FAQ on CPFB website only shows BHS amount as early as 2016:
https://www.cpf.gov.sg/member/faq/healthcare-financing/basic-healthcare-sum/is-there-a-maximum-amount-that-i-can-save-in-my-ma

I managed to find earlier BHS amount from the following webpage on Turtle Investor website:
https://www.turtleinvestor.net/cpf-news-66000-basic-healthcare-sum-for-2022/

The following table shows the historical declared values for the BHS since 2008:

A few observations:

• BHS increased every year since 2008, except 2015.
• The annual % increase prior to 2017 was somewhat irregular.
• From 2017 to 2019, the annual % increase could be rounded to 4.5%, 4.75% and 5% respectively to the nearest multiples of 100.
• From 2020 onward, the annual % increase maintained rounded to 5% and the nearest multiples of 500.

A simple linear projection formula can be established using MROUND() function in Excel:

BHS this year = MROUND( BHS last year x (1 + % increase) , multiple )

CPF BHS Projection

With the assumption of annual % increase at 5% rounding to the nearest multiples of 500 moving forward, here is the BHS projection: