22Nov, 2014

Will you be able to afford medical aid when you retire?

By: | Tags: | Comments: 0 | November 22nd, 2014

As you age, your need for health cover increases. Ideally, you need a plan with hospital cover, high chronic benefits and high day to day cover.

But unless you have saved a substantial amount to cover medical aid contributions after retirement, you may find such an option completely unaffordable.

A 58 year old single woman who plans to retire at age 60 will need to have saved R1 million to fund medical aid contributions throughout her retirement.

A married man aged 58, who wants to retire at 60, needs to have R2.1 million saved to provide for heathcare cover for himself and his wife throughout retirement.

If you are already in your late 50s and do not have sufficient savings, rather than settling for less healthcare cover, you should consider delaying retirement. This not only gives you more time to save, but also reduces the number of years you have to provide for .

[Source: The Independent on Saturday, Personal Finance]