At one point, each one of us working will retire. Despite the fact that retirement is often something that is imminent, not everyone is prepared to. In fact, nobody looks forward to retirement. Many actually put up a fight to stay on when the time to retire comes.
Truth is, it is always not the love for the job that someone wants to stay on but what comes with staying on; the money. Retirement means one is cut off from the normal monthly remunerations together with the packs that come with it.
According to Minet Kenya, there is a need for employees to plan for their life after employment by ensuring that their medical expenses are covered as soon as they are out of meaningful employment. Minet says medical expenses weigh down on many retirees.
Many employers provide a comprehensive medical insurance cover to their employees while they are employed. However, such cover usually ceases upon retirement.
When an employee retires, there is a cessation of medical cover at a time when they are most likely to fall ill. For instance, in Kenya, it is estimated that 35 percent of inpatients are people over the age of 60, although this group makes up only 4 percent of the country’s total population.
There is also a potential increase in medical costs, at a time when their income is typically reduced. In addition, the incidence rates for most chronic illnesses including various cancers, diabetes, renal failure, and cardiac issues tend to increase with age.
These factors usually result in relatively expensive medical insurance premiums for the elderly, resulting in most retirees lacking a medical cover.
Given the above, most retirees resort to “Out of Pocket (OOP)” payment for incurred medical expenses. This has generally been a big contributor to poverty in the country as it is estimated that 38 percent of Kenyans who finance their medical expenses through OOP have to either sell off their assets or borrow the funds.
Visit https://www.minet.com/ for more information.