Retirement is meant to be a time of rest after years of hard work, but one of the most significant expenses retirees face is healthcare. The rising cost of healthcare can derail retirement plans, especially in the event of a major health issue requiring ongoing treatment. Just SA’s survey revealed alarming statistics:
These figures suggest that many South Africans have not accounted for healthcare costs in their retirement planning. These statistics prove without a doubt that not only are the majority of South Africans leaving retirement planning until it is too late – if they even plan at all – the rising cost of healthcare is not included in their considerations.
Fact: Healthcare costs rise with age and are often underestimated
Many people don’t realise that medical aids don’t always cover assistive devices and other necessary aids. Statistics SA estimates that:
Fact: Healthcare inflation outpaces general inflation
Healthcare costs tend to rise faster than general inflation, putting additional financial strain on retirees. Without proactive planning, these rising costs can quickly erode retirement savings, making it challenging to maintain a comfortable and healthy lifestyle in retirement.
Plan ahead with SmartAid
To address the critical need for healthcare planning in retirement, try the NMG SmartAid calculator, which helps you save for your medical aid contributions after you retire.
Alternatively, enquire about SmartAid, which allows a member or employee to invest in a retirement annuity separately from their pension or provident fund for an enhanced quality of life in retirement. It includes an assessment of each member’s circumstances to determine if they are on track to meet their specific needs, along with an annual personalised statement reflecting their status.
Plan for your healthcare costs today
Your healthcare costs in retirement depend on three main factors: your health status, your medical scheme plan option, and when you start saving. Taking control of these factors now can significantly impact your future financial security:
When you start saving: the earlier you start, the less you need to save monthly. Tax-efficient saving options like tax-free savings accounts or retirement annuity funds can boost your retirement savings.
T&Cs apply. NMG Consultants and Actuaries (Pty) LTD is an authorised financial services provider FSP 12968