How to plan for medical expenses in retirement

Momentum Savings

5 MIN READ

Many people don’t save enough for retirement. They’re in for a huge surprise regarding the medical expenses during retirement, too.

Inflation has this habit of carving into savings and spoiling the fun. And medical inflation is even higher than normal inflation, up to 3% higher. We look at how rising healthcare costs in South Africa affect your retirement and share tips on how to beat the rising inflation during retirement.

How rising healthcare costs in South Africa affect your retirement

The impact of inflation

Increased medical claims

Some people think that they can lower their medical aid plan during retirement. The reality is that medical claims only increase.

This is the picture:

Source: Momentum Health Solutions claims statistics
(Cost per policy per month)

Beat medical inflation with a separate retirement annuity (RA)

Take control of your future by securing an extra retirement annuity for medical expenses—you won't regret it. If you already have an Investo Retirement Annuity with Momentum Savings, you can start a second one for as little as R150 per month. Enhance your fund value by adding single sums or increasing the monthly contributions to your current retirement annuity.

We’re all looking forward to that time that sounds so romantic:

Retirement doesn't have to be daunting. By starting to save early, you'll be amazed at how the power of compound interest can grow your money. Not only does your investment increase, but you also start earning interest on the interest, creating a magical multiplier effect. Embrace this opportunity and watch your future flourish.

Take the first step towards a worry-free retirement. Learn more about our retirement annuity and the two-pot system to maximise your savings.