Get post-re­tire­ment med­i­cal aid ex­penses and work af­ter re­tire­ment

Finweek English Edition - - INVESTMENT -

Old age in­creases the risk of med­i­cal prob­lems and t y pic al l y r esults in in­creased health­care and med­i­cal aid ex­penses. The em­ployer con­tri­bu­tion to med­i­cal aid schemes in most cases ceases at re­tire­ment and be­comes the pen­sioner’s re­spon­si­bil­ity. With­out plan­ning and sav­ing for your med­i­cal aid ex­penses, liv­ing out your golden years in com­fort while also cov­er­ing your med­i­cal ex­penses may re­sult in a bur­den too large to carry your­self. Pre­vent de­te­ri­o­rat­ing health from wip­ing out your ac­cu­mu­lated re­tire­ment fund­ing by sav­ing for your med­i­cal aid ex­penses and al­low­ing in­creases in your con­tri­bu­tions of 10%-15% per an­num. A sug­gested ad­di­tional mea­sure to avoid leak­ing all your sav­ings into med­i­cal care would be to take out health­care in­surance.

Stud­ies in­di­cate that many peo­ple pre­fer to work at least part-time af­ter re­tire­ment. Some­times it is due to fi­nan­cial ne­ces­sity, but of­ten it is to al­low some sense and pur­pose af­ter re­tir­ing. A postre­tire­ment in­come will stop you form mak­ing with­drawals from your nest egg and pro­vide ad­di­tional fi­nances. If you work l onger a nd a void early re­tire­ment your in­vest­ment re­turns will be com­pounded in your re­tire­ment fund, and you can pro­long your con­tri­bu­tions.

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