Why you need to start planning for health, old age needs from today

Healthcare is a priority at any stage of life. Staying well becomes a pivotal goal and with people living longer today than a few decades back, the cost of healthcare will become one of the biggest expenses you will face in retirement.

These costs will also be exacerbated by healthcare inflation, which continues to outpace general inflation and people paying for medical expenses out of their pockets.

According to 2018 Kenya Economic Survey, medical insurance, which comes in handy for many such emergencies, was inaccessible to a majority of the people aged 65 and above.

This figure included those who had a cover during their working years, which they bid farewell on retirement.

Findings from another 2021 study, by Strathmore University and Enwealth Financial Services indicated that approximately 41 percent of retirees pay for medical bills using cash.

It further showed that a third of pensioners have private medical insurance, but a fifth rely on the National Health Insurance Fund (NHIF).

Incidentally, due to higher risks, retired people pay higher premiums to get medical insurance with some providers not offering full cover for people aged 65 and above.

Eventually, these expenses can overwhelm retirees, easily depleting their savings, therefore affecting quality of life.

All these points toward one thing – the need to start planning for your healthcare needs now. It is a big decision, not just for those already working but also for those who are just starting their careers.

From social security to healthcare, and family responsibilities to how to generate cash flow to effectively plan for a successful future, it is easy to get sidetracked.

All these decisions are interconnected and can make a difference in your living costs and lifestyle in retirement as well as when you can call it a day.

While planning for your future healthcare needs, it is better to start well ahead of your retirement. A good plan hinges on financial planning and acquiring a medical plan to offset the long-term care costs.

The beauty of this is that it can easily complement your social security. In a nutshell, you get the best of both worlds – a sustainable income for your day-to-day living and insurance for your healthcare needs.

Experts say the best years to start saving for health needs is when one is between 30 – 35 years old. The peace of mind that comes when you know you have your medical expenses sorted out is worth it.

The ideal cover will cater to various aspects of your medical needs including regular doctor's visits, preventive care, surgeries and hospitalisation, among others.

For the elderly who did not plan for their healthcare needs, the options are quite limited. And as much as the government is working on a comprehensive social security system, it is not yet at par with what is obtainable in other countries.

The good news is that you can still take matters into your own hands and secure medical insurance cover as soon as possible.

A good example of a plan that allows you to save for your future medical needs is a pension-backed health plan.

This type of cover enables customers to save towards purchasing medical insurance after retirement through pension schemes, going a long way in assisting them plan for their health-related retirement expenses.

The writer is the CEO and principal officer, Britam Life Assurance Company.