Prudent financial changes pay off

THE lead story “Hunger stalks communities” (the POST, September 30October 4) reflects the hardships that communities are experiencing due to the coronavirus.

This is especially so for the unemployed and pensioners. As a pensioner myself, I have made some significant decisions regarding my financial portfolio that has helped me to survive these trying times.

First, I reviewed my medical aid cover that I was a member of for over 50 years and changed to a new provider that saved me R1 200 a month – with even better benefits.

My “out of hospital” benefits that are not used during the year are carried forward as savings to the following year, unlike my previous provider.

I also reviewed my medical GAP cover when I realised I was paying R500 per month, of which R100 was for brokers fees that I had nothing to do with.

When I queried this, I got a lengthy response regarding regulations, etc. What made me cancel this cover was after having eye surgery and submitting a claim for a R776 shortfall, and it was denied. Imagine, after being a member for some 30 years, and after making the first claim, it was rejected. This gave me every excuse to cancel this GAP cover.

I also changed my short-term insurance that also saved me R300 per month. These new providers are all reputable companies.

Another savings came from downgrading my DSTV bouquet, that saved me R600 monthly.

Although I miss some sports channels, I now realise that other TV channels, like the SABC, do screen quality programmes such as wildlife, which is one of my favourites.

I also supplement my monthly income with an investment in RSA Government retail bonds.

This investment is made directly with the Treasury, and if you are a pensioner over 60 years, you can opt to receive your interest monthly. What was a pleasant surprise was the interest being raised in April 2020 by 3.5% per annum.

The 2/3/5 year investments were all increased.

Many do not realise that once any of these investments reach a year into maturity, and should the interest rate increase, one has the option to restart the investment at the new rate.

For instance, the five-year investment in March 2020 was increased from 8% to 11.5% per annum in April. This is an attractive rate, especially for hard-pressed pensioners.

One factor these bold moves I have made has taught me is that when it comes to surviving financially, loyalty does not count as long as one deals with reputable providers.

Most suppliers require one calendar month’s notice in writing to terminate membership.