By Gary Feldman
Most South Africans leave their retirement planning too late – and when they do finally get around to it, they often fail to include the rising cost of health care in their considerations, which could seriously impact the quality of their lifestyles.
Many consumers do not realise that assistive devices and aids are not always covered by medical aids.
StatsSA estimates that nearly one out of every four South Africans over the age of 60 takes chronic medication; one in five use assistive devices like glasses; one in 10 wear hearing aids; and 5% use wheelchairs.
If you can’t afford your necessary assistive devices or chronic medication, you may face debilitating pain and even depression due to your physical and financial circumstances.
On average, health-care costs tend to sit 3% – 4% above inflation every year, with few employers offering medical aid subsidies for their retirees. As a result, retirees are under increasing pressure to afford their medical aid premiums.
Your health-care costs in retirement depend on three factors:
Your health status
Your current health and your family's medical history can tell you how much you can expect to spend on medical costs as you age. Other important factors include: Are you a smoker? Do you visit the doctor often? Do you have chronic health conditions?
Your medical scheme plan option
The best way to deal with increasing medical scheme costs is to review your plan options regularly. Some medical schemes will allow a plan downgrade during the year, but most will not allow you to upgrade until the end of the year.
When you start saving
Your medical costs will increase as you age. As a result, it's a good idea to plan early and start saving for these costs while you are younger. The sooner you start saving, the less you will need to save each month to reach your savings goal because you will be saving for a longer period.
Gary Feldman, executive head of Healthcare Consulting, NMG Benefits.
*The views expressed here are not necessarily those of IOL or of title sites.
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