Retirees should set up health savings accounts

SEREMBAN: The biggest concern among society, particularly future retirees, in addition to whether they would have enough savings to sustain them until their old age, is the health issue which can be costly and exceed their savings in the Employees Provident Fund (EPF).

As such, future retirees especially those without insurance policies should set aside a sum of money (in savings account) for health to cover medical costs.

Printing company supervisor, Azura Amri, 41, said the EPF contributors must have awareness from the beginning that when they get older, their health would deteriorate and they would be at greater risk of getting the three common diseases, namely diabetes, cardiovascular disease and hypertension.

She said the contributors who would go through the retirement phase would want to focus not only on giving the best to their families but also on health issues that affect their hopes along the way.

“They must be wise in managing the EPF money they have saved.

“They shouldn’t only think of buying this and that, and paying their debts until they have no savings for health purposes which should be the priority.

“Contributors without life insurance policies are the ones who should set aside savings for health,” she told Bernama here recently.

Azura said the special account would also ensure that contributors’ savings are more organised and their expenditures on health guaranteed.

“It might be better with this method as they get to manage their finances for health in a more efficient manner.

“If a single account is mixed and serves for other purposes, it is feared that it will cause a little bit of confusion in financial management,” she said.

Alif Abdul Rahman, 25, who works as a clerk at a petrol station here, said a well thoughtout preparation was needed as health was something we could not foresee.

“I suggest that the contributors sign up for life insurance policies from now on as these policies can at least cover medical expenses should they not have enough EPF savings for that.

“If they have children who can help them, then they’re lucky. Imagine if they have no children, husband or wife. This will definitely affect their lives.

“When we take health issues lightly, we will not have awareness and preparation to save for medical expenses when we’re in old age,” he said.

Alif said illnesses listed under out-patient treatment might not be very costly to the contributors.

“But when they need to be hospitalised after being diagnosed with chronic diseases, where would they ask for help if they have no savings?” he asked.

Echoing the same sentiment was L Srinivasa, 46, who said the health issue had become a priority following today’s uncertain cost of living.

“We wouldn’t know whether medical cost in the future will be high or not but one thing is for sure, we should be prepared for rainy days. Maybe a certain portion from the EPF savings can be set aside for health,” said the fast-food outlet employee. — Bernama