Lifestyle and Tech – 12th February 2025
As many South Africans transition into retirement, the financial landscape becomes increasingly challenging, particularly regarding healthcare costs. For many retirees, managing medical expenses is a daunting task that can significantly impact their quality of life. Approximately 38% of South Africans over 60 require chronic medication, and many need costly assistive devices such as hearing aids and wheelchairs. The financial burden can be overwhelming, especially considering that the costs associated with conditions like dementia can reach between R3 million and R7 million over a lifetime. Additionally, 4% of retirees experience depression, which can lead to increased healthcare expenses and further strain their finances. Understanding and preparing for these costs is crucial for maintaining a sustainable quality of life during retirement.
The essential role of gap cover
In this context, gap cover emerges as an essential financial tool for retirees. This supplementary insurance product is designed to bridge the financial gap between what medical aid schemes reimburse, and the actual costs charged by healthcare providers. Medical aid schemes in South Africa typically reimburse healthcare providers at rates of 100%, 200%, or 300% of their tariff. However, healthcare professionals often charge up to five times these rates, leaving retirees vulnerable to significant out-of-pocket expenses when they require medical care. By investing in gap cover, retirees can protect themselves against these financial disparities and ensure they have access to necessary medical services without depleting their hard-earned savings.
Peace of mind in your golden years
The importance of professional guidance
However, understanding and selecting the right gap cover policy requires expertise, which is where a knowledgeable financial advisor or broker comes into play. The complexities of retirement planning necessitate professional guidance to ensure that individuals make informed decisions about their healthcare cover. A skilled advisor can assess a retiree’s unique financial situation and recommend tailored solutions that align with their specific healthcare needs and retirement goals. They can also provide insights into the various gap cover options available and help retirees choose a policy that complements their existing medical aid scheme effectively.
Safeguarding your future: risk assessment and ongoing support
Having a financial advisor is invaluable in conducting a comprehensive risk assessment as well. As healthcare needs evolve with age, retirees must understand how gap cover fits into their broader financial strategy. An advisor can help identify potential gaps in cover and recommend appropriate measures to mitigate these risks. This ongoing support is crucial as circumstances change over time, ensuring that retirees remain on track toward achieving their long-term financial objectives.
The reality check: understanding healthcare costs
Retirement should be a time of enjoyment and relaxation; however, without proper planning for healthcare costs, it can quickly become a source of stress and anxiety. Many retirees are shocked to discover the extent of out-of-pocket expenses they may face even with medical aid cover. Common procedures such as hysterectomies or malignant neoplasm surgeries can leave individuals with substantial bills if they lack adequate gap cover. For example, while a malignant neoplasm skin of the scalp and neck might cost around R158 754.73, typical medical aid reimbursement may only cover about R50 343.40, leaving the patient responsible for approximately R108 411.33 without gap cover. By closing this financial gap, retirees can afford the care they need without jeopardising their financial stability.
Securing financial well-being for your golden years
As many South Africans prepare for retirement, understanding the importance of effective healthcare expense planning becomes increasingly vital. Gap cover plays a critical role in safeguarding against high out-of-pocket medical expenses and ensuring that retirees can access necessary medical care without depleting their savings. Coupled with the expertise of a trusted financial advisor or broker, retirees can navigate the complexities of healthcare costs with confidence. By investing in gap cover and seeking professional guidance early on, individuals can secure their financial well-being and enjoy their golden years free from the burden of unexpected medical expenses.
Ultimately, effective retirement planning goes beyond simply saving money; it involves strategic decisions about how to manage potential healthcare costs throughout one’s later years. With an aging population facing rising medical expenses due to inflation and increasing life expectancies, understanding the role of gap cover in providing additional financial security is essential for all South African retirees seeking peace of mind in their golden years.
Tony Singleton – CEO Turnberry Management Risk Solutions
Retirement readiness – Securing your financial well-being in the golden years – Lifestyle & Tech
What is Gap Cover?
https://getcovered.turnberry.co.za/app/1
Client Testimonials
We are pensioners and although we do have a medical aid we cannot afford the burden of any extra financial costs charged by doctors/specialists who are contracted out. Would you recommend Turnberry – The choice is easy-Turnberry! “par excellence”. Sakkie Venter
Gap cover has benefitted me as a pensioner by picking up medical costs not covered by medical aid. I would recommend Turnberry to my family and friends. Turnberry’s services are prompt & efficient and their claim submission requirements are made clear upfront.
I just can’t describe the peace of mind that my co-payment was completely paid in full ! As a pensioner I don’t have that extra money and I required surgery as I was in a lot of pain. Gap Cover is absolutely a necessity as co-payments are a huge problem for Hospital admission if you don’t have extra cover ! 10 out of 10 for Service and handling of my claim. Aletta Webb
Turnberry has helped us immensely. Three years ago we had an emergency and ended up having to pay quite a large amount of money out to Doctors. Since then my husband has lost his employment and we had to downscale our Medical Aid and that was when we were told to take out Gap cover. As pensioners with no pension OR income we were very shocked to receive accounts from doctors as well as the hospital. We realise now how much help Gap cover has been to us. The Staff have been so accommodating when I had questions and the Claim form has helped me immensely. I have to add as a 61 year old, who does not know much about computers etc., I found it easy. Claims were dealt with speedily. THANK YOU SO MUCH! Ms PL Smith