Plan ahead for your healthcare expenses during retirement

Neglecting to plan for healthcare costs in retirement may just be a deal-breaker when it comes to being able to access quality healthcare in your golden years. When planning for retirement, you also need to consider that medical inflation is 3-5% higher than standard inflation. This means the ability to afford your medical aid and related expenses years down the line will be hampered by the eroding effect of inflation on the buying power of money. To afford the same medical care you are accustomed to today in 20 years’ time, you should budget a larger part of your income towards medical expenses than you currently do. expenses. The additional benefit of gap cover further safeguards you and can assist with covering shortfalls in medical expenses or emergencies that result in additional unforeseen expenses.

3. Dread disease cover

This is a worthwhile consideration to cover your costs should severe illnesses like dementia or cancer (which can have immediate consequences for your lifestyle, with significant financial implications) come your way. With dread disease cover in place, you can receive a lump sum upon diagnosis, which may help with expenses and lifestyle adjustments.

Sanlam’s Goal Manager is a useful tool that shows South Africans a real picture of what the cost of medical aid will be in the future. It enables you to input any existing provisions, which are then calculated by Goal Manager using existing costs and factoring in inflation, to show you what the starting premium would be. This will enable you to save and afford medical aid in retirement.