This is how much you need just for medical aid in retirement - Moneyweb

The generally accepted view is that after retirement, you need to ensure that your income is equal to 75% of your final salary. This is because once you stop working, you can cut a lot of expenses.

The most obvious is that you no longer need to save for retirement. Therefore, your contributions to pension and retirement annuities can be reduced.

You also don’t go to work every day, which means you don’t need to spend too much on gasoline. If you and your spouse have used two cars before, it may even be reduced to one and reduce the insurance and maintenance costs associated with the second car. If you two need to be in different places at the same time, there will always be Uber.

Since you no longer need to dress for the office, you can also save on clothes. The demand for formal clothing and shoes may decrease.

However, one expenditure will not decrease. In fact, if you are going to experience recent history, it may increase before any other cost.

Karen Wentzel, head of Sanlam Employee Benefits annuities, said: "In the past few years, the average increase in medical assistance payments exceeded the inflation rate by 3% to 5% each year."

According to Sanlam, the average monthly contribution of adult members is now R3 000 to R5 000. In many cases, individuals who are still working will be paid part of their salary by their employers. However, when you retire, you are likely to be alone.

Since your medical needs will almost certainly increase as you age, it is realistic that you will adopt the plan sooner or later if you do not adopt the most comprehensive medical assistance plan when you retire. This may further increase costs.

Taking inflation into account, Winterzell suggested that retirees should even be allowed to increase their contributions by 10% to 15% each year to ensure that their needs are met.

She said: "If donations increase by 15%, your medical assistance donations will double every five years."

"Unfortunately, no pension fund pays for 15% growth, so your medical assistance will account for a large part of your income every year."

This is the reality that retirees need to plan. After all, your health will never be compromised. However, few people know exactly how much money is needed to meet their medical assistance expenses.

The following table describes this:

Source: Sanlam employee benefits

This shows that the 55-year-old woman retiring today’s medical assistance costs are 3% higher than the inflation rate, and she will need 1.77 million reais to cover this cost.

Wentzer said: "Assuming that a couple is composed of a 60-year-old male and a 55-year-old female, they will need to pay 3.5 million to 4.5 million rand for lifetime medical insurance premiums, assuming that the monthly medical expenses are 5000 reals. ."

This shows how important it is to understand the actual value of a lump-sum payment upon retirement. Although 4.5 million reais sounds like a lot of money, this may only be enough to meet the couple’s medical assistance needs, regardless of their other living expenses.

Of course, this is an area where you cannot afford to be inadequate. When saving for retirement, it is important to understand your work goals and understand how much you need to reserve to ensure your health is taken care of.

This is the medical assistance issue that Patrick Cairns really wants to study:-Once the ANC, through Minister Mhkize, launches the National Health Insurance program here in South Africa, what will be the donations and benefits of all these medical assistance members in the country?

See what you can get from Patrick, because this thing is worth it.

How about some input from Discovery or Momentum, what do they know? What did they take?

The good thing is that if the government succeeds, we won't need to pay for medical assistance or medical services, because all of this is free...or at least this is what their voting base believes.

Fairy Tail did come true; it was like winning a lottery. I think the people who read these articles are very smart and can provide some insight into the funding and implementation of NHI. State-owned enterprises are short of funds, grants are inflated, illegal immigration... I do not see that the free NHI will be implemented soon.

The medical aid industry in South Africa (like many other industries) should be closed. They are complete liars. The sooner NHI is implemented, the better.

Well, it is true: In your opinion, state-run hospitals will meet the needs of the entire population: Dream is for dreams!

Even in the UK, if you don't have private medical insurance, you will be full.

This government cannot do one thing correctly.

No, I don't think so. It will be very similar to Eskom. Everyone will get the same service, some will only pay more, and some will not pay anything. Usually, you don’t have any services at all, which affects the entire country.

After all, it is Africa.

I will pay for my medical assistance, thank you. This is a monthly resentment premium, but we have to pay.

I know many doctors who work in the National Hospital. They are happy to pay for medical assistance for private healthcare. They told their friends and family to do the same.

I am still waiting for the appearance of the Tooth Fairy and the Easter Bunny. Well, do you know that the country uses taxes to fund its projects? Collected from the private sector. NHI will make thousands of private companies and private employees unemployed, and lose billions of value-added tax, PAYE, corporate tax and other taxes. Many other businesses rely on the private medical industry as customers: the computer industry, medical equipment, consumables, pharmacies, brokers, cleaners, security, catering, this list is endless. So, if they lose all their tax revenue, what will they use to make money? Moreover, your retirement investment in private hospital groups is likely to disappear. The average age of SA experts is over 60 years old. If they implement NHI and become enslaved, they can/will retire. Young doctors have exportable skills and are likely to emigrate. NHI will easily solve the patient's medical expenses: no services, no fees. Just check your funeral cover.

Unfortunately, most people will not be able to afford these amounts, and most pensioners now do not even have a monthly living income of R5000.

Most people who bought a retirement plan/plan 45 years ago did not realize that the income and figures that were recommended or sold to them 45 years ago are far from what they were told to be a good plan. time…..

Everyone underestimates the impact of rising inflation costs and expenditures, while their income is attracted by inflation below growth and inflation rates of return (such as today’s pensions and RA).

Medical insurance and life insurance companies have turned people away because not everyone can use or take back what they put in over time.

This is a form of the "legal" pyramid scheme that only pays to people who use medical assistance. I'm not a financial consultant, but it seems that most of our early adopters are drawn into a bottomless pit and cannot support you without new employees. Assuming everyone stops paying for life insurance and pays it in full today, will you still be paid?

Nowadays, most life insurance will no longer pay any amount after you reach the insurance period of the life insurance, which is different from the early life insurance policies that have a payable form of end.

Before signing, please read carefully and try to understand these policies better, especially what you might get or not get, and whether it will be good for you if you take another path to pay for future expenses for you and your family. Once you spend It’s been too late to pay for these plans for years and realize that not much money will return to you or your family’s pockets.

It is so correct about life insurance policies. My policy "expired" when I was 60. He has paid for at least 40 years. The premium is very low, but still a loyal customer for 40 years. I should have read the fine prints those years ago...

so true. Now, the premium has paralyzed us. Especially when one is self-employed. Some of our small business owners are considering giving up medical assistance. Maybe we should establish a relationship with the staff of Chris Hani Bara Hospital.

Most South Africans are unable to prepare for this and after retirement and/or after. Such an article sounds a lot like "Baba maak vir gogga bang". Ordinary people cannot fully satisfy all possible situations. The truth is: you can only do a lot of things, not more. This is reality.

Regarding NHI, there are a few simple facts to consider: 1) Good health care requires long-term and appropriate training of nursing staff (doctors, pathologists, anesthesiologists, various experts). This will cost a lot of money. 2) Qualified people need to reimburse expensive training expenses. 3) If they cannot get here in SA, they will go to other places. 4) The birth rate in South Africa currently exceeds our growth rate. 5) Due to our terrifying national education (provided by SADTU), most South Africans will not be able to get high-paying jobs (our average national annual income is about R13000 per month). Therefore, they will not be able to pay for expensive medical expenses. So, how to pay for NHI? Currently only about 3.5 to 4 million South Africans pay 95% of all taxes – note: all taxes! -Income tax, value-added tax, company tax and one hundred other hidden taxes. These people have been executed. No more money can come from here. Therefore, there is no money to pay for NHI that can provide quality care to all South Africans. QED.

As NHI loses a large number of private company taxpayers, this small tax base will shrink further. NHI employees are paid through taxes, and they do not create wealth like private companies.

How about paying for SAA and Eskom?

think about it...

If the Medical Aid Association has 3 million members and pays an average of R3000 per month, the monthly turnover will be R9 billion, and the annual turnover will be R108 billion! I very much doubt whether the claim has reached this amount. This can also explain why some MA CEOs can own wineries, helicopters and houses abroad!

Just my observation.

Repost my previous comment.....

This can also explain why some medical aid companies need their own bank-they need a place to store all our Lolly!

I think the government has a history of taking care of your money? I am not worried about the medical expenses after retirement. I am worried that no matter what the price is, I will not be able to get quality medical services. This is why my husband and I set up reserves for specific needs outside of RSA.

Unfortunately, South Africans (especially those in better conditions) believe that medical assistance is a kind of savior, and they will come to help when they need medical assistance.

People forget that an insurance company is behind the medical "assistance". In other countries, this is called "health insurance." Insurance companies make money.

The cost of medical assistance for a family of four in South Africa usually exceeds R5000 per month. This is the money you pay for something you probably won't use. Moreover, when you use it, the cost is probably not close to the R5000 you paid that month.

I used to work for a medical insurance company in South Africa. They are capitalists, and the companies that support their business model (ie, private hospital groups) are also capitalists.

This means they want to make more money from people. In layman's terms, they want to charge you as much as possible and pay as little as possible. They operate as cartels.

Then you should ask a question: How much do you really benefit?

In the past 20 years, my accumulated medical assistance expenses were approximately R1 800,000. During that time, my medical expenses (including childbirth) were approximately R300000. This includes the amount that I have to pay, which I pay out of my own pocket, because the medical savings for the year have been used up.

The conclusion drawn from this is, why should healthcare be capitalist? When a person has cancer or a stroke, since they have more money, should they get better treatment in these situations? Do they feel unwell? Should they enjoy less dignity?

Those who believe that they do this are essentially exacerbating the rising costs of the private medical industry because they resist non-profit medical services.

In principle, I totally agree with NHI. I believe that everyone deserves exactly the same treatment when they are sick. I also believe that national health insurance will reduce the cost of private medical care due to alternatives on the market.

I don't think it will work perfectly at the beginning, it will take ten years to become an almost fully feasible alternative, but the price of private medical care will drop almost from the beginning. This is why the medical plan started a fear-spreading campaign.

There will always be those who refuse to change for any reason, and who will believe that those with exclusive health care are their gods. Once NHI appears under any illusion they believe, they can continue to pay for private healthcare. I do hope that they at least politely thank NHI for reducing costs.

In the United States, which has capitalist healthcare, the cost of healthcare is three to four times that of South Africa. Most people there cannot afford medical expenses. In many states, they give your child a tax refund of R200 000 to R400 000 after giving birth.

In countries where NHI exists, medical expenses are lower than our medical expenses. For example, general practitioners in New Zealand cost between R150 and R250 for consultation, while medical services under the age of 16 are completely free.

I do remember how much resistance there was when the Gautrain was announced, and many of the most determined resistors to Gautrain I know have now become everyday users and can only praise this.

Those with the strongest resistance may be the most feared.

You are right in only one aspect: under NHI, everyone will receive the same medical treatment. It's terrible. You are talking about socialism. Never worked in human history and never will. The only supporters of socialism are those who wish to make money through the hard work of others.

Why is health care not equal for everyone?

TheSpark, please try to live in the real world, not in your socialist dreams, where all resources are unlimited and abundant, and all members of the society are sitting by the campfire and singing kumbaya.

Will the health systems in New Zealand and the United Kingdom fail to operate successfully on this principle?

We are not talking about the entire economy.

What you worry about is the increase in medical expenses.

How do you suggest that rising medical costs far exceed inflation, so as to control your retirement savings?

There is currently a system that allows everyone to receive exactly the same health treatment in government hospitals. NZ and UK are not SA. If SA transfers to NHI, more people will get private healthcare, but the supply side will remain the same or even decline. The existing middle class will pay double the salary, and I can see a long waiting list. Unless of course you are not in place, you are the minister, which is why they don’t care. The British health system is horrible. The woman is not accompanied by an expert and the waiting time is very long. It was in a country with a broad tax base.

If the pensioner’s medical expenses increase by 10% to 15% is too expensive, it will also exceed the normal salary increase.

Obviously, complaining about our capitalist medical care is meaningless.

Let the 15% growth continue.

The solution to reduce costs lies in market mechanisms. Train more doctors and nurses.

Why should everyone get the same medical services? Not everyone has access to the same educational services, security, salary, housing, etc. Why are medical services different? No country in the world provides the same medical services for everyone. Do you think that the Prime Minister of New Zealand or the United Kingdom receives the same medical attention as the homeless? Do you think that British government ministers must wait for their general elections like ordinary voters? If you say that the minister deserves faster/better service, how would you divide the line? Councillors, provincial prime ministers, city councillors?

Spark, in an ideal world, I agree with you. Your Gautrain example is not so good-taxpayers subsidize this thing to the moon, and the "owner" makes a good profit; very South African.

The difficulty is that selfishness has hijacked almost all options, especially in South Africa. Gone are the days of public service politicians and "civil servants". The same is true for altruistic businessmen and businesses. Unions serve their "leaders" rather than members or the greater public interest. Therefore, as more and more people copy and adopt philosophies such as "get rich quick" and "attract the public", each choice is doomed to failure, and SA may see Zim or Venezuelan style end game coming soon. Many people see better options in other parts of the world and then move abroad to learn skills with them.

Unless someone (the president) starts to set an example and truly lead, I will not see a sustainable solution.

So, do you want to have state medical insurance like dev.world or private medical insurance? None of it seems to work...

There are many plans on Carte Blanche for heart and cancer patients who cannot get timely medical services in public hospitals.

At least under the current system, if you are willing and able to pay, you will be treated.

Patients from all over Africa can use our private healthcare system. This system is providing support for productive people in our society.

Everyone wants the public health system to be improved, but there are many stories about lazy and incompetent managers operating these facilities.

@TheSpark-You don't seem to understand the golden rule: the person who owns the golden rule made the golden rule. Sorry-that's it. Communism has been destroyed and has been driven out of more than 50 countries. The pink relatives, socialism, can only pay (very high) taxes in a few Nordic countries where approximately 60% of the population. In contrast, only 3 to 4 million people (among 58 million) in South Africa have paid almost all of their taxes. NHI is a dream dream, and it will always be until MOST South Africans pay meaningful taxes. (By the way, "full tax" includes value-added tax.)

There is a company with three inverted pyramids... the profit pyramid in life insurance, lifestyle planning, and medical assistance. They made a lot of money and confused ordinary South Africans with all the pig heads.

Why banks are so attractive and profitable is justified.

Keep the hamster running...

Prepare for a good hospital plan. Why spend more on the medical savings account section? After all, this is your money and there are no tax benefits at all!

Driven by optimism about additional US stimulus measures and the dovish Fed.

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