When planning for retirement, we tend to underestimate the cost of medical aid which historically has increased faster than inflation eating more and more into your future pension.
It is said that you spend more on medical expenses in the last two years of your life, than the whole of your life. If this is in anyway true then having an appropriate medical aid is essential.
Appropriate not Best
It is important to choose an appropriate plan to be on at any point in your retirement years. During the year you can downgrade your plan but you cannot upgrade. So you need to be very aware of the benefits your plan provides.
The higher you anticipate your need for medical care the more comprehensive the plan should be. Conversely if you are a low user you don’t need a fully comprehensive option.
Cover the big bills
Unlimited hospital cover is a must have. If cost is an issue rather scale down on the out of hospital benefits which are more affordable than in hospital costs.
Core and saver plans are less comprehensive for day to day meds but still provide unlimited cover in hospital.
Consider “Gap Cover”
The savings on these options can be used to fund a gap cover policy.
This provides cover for the excess costs which are often charged by the surgeon and the anesthetist.
There are tax deductions on medical expenses after 65 which will compensate for the costs.