Growing older should come with peace of mind. However, for many South Africans, it also brings unexpected financial pressure. Medical bills, once occasional, are now a regular part of life. From chronic medication to regular check-ups and assistive devices, rising health costs are stretching household budgets, especially for seniors.
According to Statistics South Africa (Stats SA), inequalities in access to medical aid, whether by sex or population group, persist among the country’s elderly. Less than a quarter of older South Africans are members of medical aid schemes or private health insurance (23.8% in 2017 and 23.3% in 2021), leaving most to rely on public healthcare or pay out of pocket for medical care.
Additionally, FNB’s retirement insights survey shows that just one in ten South Africans plan to retire at 60, with many continuing to work longer to stay financially secure. “When health costs rise faster than income, the pressure becomes real.
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And financial education plays a big role in helping people, especially seniors, stay in control of their money,” says Dhashni Naidoo, Consumer Education Programme Manager at FNB. “Even small, steady financial habits can make a real difference when one is faced with rising living and healthcare expenses.”
Think of your money like your health
Just as your body needs regular care, so do your finances. Ignoring small issues, like missed payments or untracked expenses, can lead to bigger problems down the line. Checking your financial “vital signs” regularly helps you stay prepared for life’s surprises.
Naidoo shares these five smart financial habits to ease pressure from rising health costs:
Track and plan for health spending: Write down all your health-related expenses, medication, doctor visits, and supplements. “Once you have a budget, revisit it often and make small adjustments to avoid taking on new debt,” states Naidoo. Planning ahead helps you stay calm when receiving and managing your medical bills.
Pay yourself first: Set aside a small amount each month for emergencies. Automating your short-term savings even if it’s modest, builds a cushion for unexpected medical costs and brings peace of mind without the need for one to dip into their long-term financial planning.
Avoid using credit for emergencies: When unexpected health issues arise without supporting finances, it’s tempting to reach for credit, but interest adds up quickly. Focus on paying off your existing debt and use credit only when it’s absolutely necessary. The less you owe, the more freedom you preserve.
Separate needs from wants: Essentials like food, housing, and healthcare come first. “In tight months, focus on what’s necessary,” Naidoo advises. Cutting back on unplanned extras can protect your long-term financial wellbeing.
Review your plan every year: Medical costs often rise faster than inflation. Revisit your budget annually to account for any new treatments, medication, or price increases. Staying proactive with managing your finances helps you stay in control.
Age with confidence
FNB continues to see how simple, mindful habits can help South African seniors feel more financially secure. “It’s about being aware, staying disciplined, and making better choices with what you already have,” adds Naidoo.
Growing older doesn’t have to mean financial worry. By tracking expenses, saving regularly, avoiding unnecessary debt, and focusing on what matters most, senior South Africans can manage rising healthcare costs and enjoy their golden years with confidence and dignity.
