Female life expectancy in South Africa is now almost 70 years, reported News24 on 30 July 2024. We can probably safely assume that on average healthy women in higher income brackets may live much longer.
If we compare stats from the the World Health Organisation, we see that in 2023 in the age group from 60 to 64, there were 1,1 million of South African women, compared to 700 000 men. In the age group 65 to 69, there were 800 000 women and 500 000 men. So, the pattern continues.
The Our world In Data explains as we grow older, men are more prone to respiratory and cardiovascular diseases, infections, cancers and autoimmune diseases.
This begs the important question of whether women need to worry more about medical costs during retirement.
Many people may hope for government’s planned National Health Insurance. But institutions warn that it may be years before it comes into play. Despite the enthusiasm of Health Minister Aaron Motsoaledi, it’s likely to receive more legal bloody noses, as it did in the high court on 24 July 2024, as reported on by Daily Maverick.
What is on the table now is that medical expenses will rise during retirement. Medical inflation is usually 3% to 4% higher than the consumer price index (CPI) anyway.
A look at the effect of inflation on just medical aid expenses brings this picture into clearer focus.
Let’s compare bread or milk inflation to medical aid inflation.
Source: Stats SA, as quoted by BusinessTech: Here’s what you could buy for R100 in South Africa 30 and 60 years ago.
The numbers scare me blind, even though I have quite a number of years before I retire. We all know that hardly any company still pays for medical aid when we retire, and we all know medical aid runs out by April or August in a year anyway, depending on how comprehensive your plan is, or how big your health issues are.
I was born with asthma, a condition that has been a constant companion throughout my life. More recently, I also developed high blood pressure out of the blue following a bout with Covid-19.
These issues have taught me resilience and the importance of proactive health management. But what if my health issues worsen? Will it impact my quality of life and ability to stay active?
But who knows what advances in medical science and technology can bring. I am inspired by stories of people who have overcome significant health challenges and lead fulfilling lives well into their later years. Maintaining a positive outlook, staying active, and continuing to learn and grow are key elements that keep me optimistic. The support of family and friends also provides a solid foundation of hope.
That said, I know that apart from saving for retirement, saving for medical expenses during retirement is crucial.
A hospital plan won’t be the answer. The graph shows how medical claims generally increase during the retirement years.
Fortunately, a financial adviser can indicate what a person’s needs during retirement may add up to. With a plan, one can go places. Taking out an extra retirement annuity earmarked for medical expenses is not a bad idea.
The numbers scare me blind, even though I have quite a number of years before I retire. We all know that hardly any company still pays for medical aid when we retire, and we all know medical aid runs out by April or August in a year anyway, depending on how comprehensive your plan is, or how big your health issues are.
Sacrificing now is not what we enjoy, but nothing else will empower us for future challenges. We’ll all need a robust financial foundation.
Being prepared, and therefore trying to save diligently, is the one thing that will enable us to face the future with confidence.