Don’t Let a Critical Illness Turn Your Retirement Into a Nightmare
- Tony
- May 13
- 2 min read
We all dream of retiring comfortably — enjoying our golden years with the financial freedom to travel, relax, and spend time with loved ones. But the unfortunate reality for many South Africans is that retirement doesn’t always go as planned. One of the most overlooked threats to a secure retirement is the impact of a critical illness.
Even those who’ve saved diligently and invested wisely can find their retirement plans disrupted by sudden health issues. And with longer life expectancies thanks to medical advancements, this risk is becoming more common — and more costly.
The Rising Risk of Critical Illness
As we age, our likelihood of facing serious health conditions increases. According to Momentum Life Insurance’s 2023 claim statistics, nearly 50% of all critical illness claims were for individuals aged 55 and older. This clearly shows that critical illness is not just a possibility — it’s a probability for many in retirement.
A single diagnosis can undermine even the most meticulous retirement planning. Medical bills, lifestyle changes, and long-term care can quickly eat away at retirement savings meant to last decades.
Is Medical Aid Alone Enough?
Many retirees assume their medical aid will take care of all their health-related expenses. Unfortunately, this assumption can be dangerously misleading.
Medical aid (even with gap cover) primarily covers in-hospital treatments and often comes with financial caps. Medical aid typically does not cover some of the costliest aspects of dealing with a critical illness. These include rehabilitation, palliative care, home modifications, and ongoing support services.
In addition, medical aid premiums increase with age and often rise faster than inflation. This creates a challenge: just when your need for medical cover increases, your ability to afford it may decrease.
Why You Need Critical Illness Cover
Stephen van Niekerk, Executive Head at Momentum Life Insurance, warns that too many people focus solely on investing for retirement and neglect the risk protection aspect. The truth is:
Investments are not a substitute for insurance.
Insurance is not a substitute for medical aid.
A resilient financial plan requires all three.
The best approach? A layered one:
Good: Have medical aid.
Better: Add gap cover.
Best: Include at least R1 million in whole-life critical illness cover — and keep it active beyond age 65.
Secure Your Financial Future
At Proper Group, we believe a comprehensive retirement strategy must include critical illness protection. This is not just about health — it’s about financial peace of mind. A single illness shouldn’t force you to deplete decades of savings or sell assets you worked hard to build.
We encourage you to review your current risk cover. Protect your retirement dreams from the impact of unforeseen medical costs.
Ready for Future-Proof Your Retirement?
Let’s have a conversation about your long-term plan.
Contact us today to speak with a financial advisor who can help you integrate critical illness cover into your broader retirement strategy.
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