Get post-retirement medical aid expenses and work after retirement
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.