What is the health corpus needed at Retirement
“From the bitterness of disease man learns the sweetness of health ” a Catalan proverb.
Health is now a growing concern and matter of interest for all . Wellness is an industry and many young people opt for a balanced diet and regular exercise rather than lead a sedentary lifestyle . A fit body is no longer a matter or fashion or fame but a matter of lifestyle. Awareness among the younger generation is growing and this is a big leap from ‘couch potato’ lifestyle to a ‘millet friendly organic food ‘ lifestyle.
The Indian wellness industry was estimated at close to Rs 85,000 crore in financial year 2014-15 and is expected to grow at a compounded annual growth rate (CAGR) of nearly 12% for the next 5 years. The report Value Added Service – Wellness and Preventive Healthcare stated that wellness will be a key growth driver of health insurance in India.
There has been a major epidemiological transition in India in the last 25 years, and the focus has shifted from communicable to non-communicable diseases (NCDs). The major reason for this is the change in economic conditions, resulting in a shift towards an unhealthy lifestyle. In line with this change in the population , the Government has prioritized in the National Health Policy the below points –
The policy identifies coordinated action on seven priority areas for improving the environment for health:
– The Swachh Bharat Abhiyan –
– Balanced, healthy diets and regular exercises.
– Addressing tobacco, alcohol and substance abuse
– Yatri Suraksha – preventing deaths due to rail and road traffic accidents
– Nirbhaya Nari –action against gender violence
– Reduced stress and improved safety in the work place
-Reducing indoor and outdoor air pollution
With growing concerns of NCDs , people are forced to pay huge amount of money for diagnosis and treatment. The growing cost of treatment has got us thinking about the future – To create a health corpus.
The cost of treatment rose at a double-digit pace of growth, outpacing average inflation in both rural and urban India over the past decade, according to the recently published results of a cross-national survey on health conducted by the National Sample Survey Office (NSSO) in the first half of 2014.
Source of picture : http://www.livemint.com/Home-Page/SB8TIw7eLnm9JPTz0t4jUJ/Indian-wellness-industry-likely-to-hit-Rs15-trillion-by-FY2.html
Considering a hike at a minimal of 8% in 10 years and 20 years , we have calculated below,projection of costs in 2027 and 2037 that are not covered in a normal health insurance plan.
|Health Condition not covered by health insurance||Current Cost||Future Cost in 2027||Future Cost in 2037|
|Dental Implant||63000||Rs. 1,36,012.27||2,93,640|
|Crown Ceramic||16240||Rs. 32,902.02||71,032|
|Root Canal Treatment||12700||Rs. 27,418.35||59,194|
|Master Health Chk up||12700||Rs. 27,418.35||59,194|
How much ??
A medical expense hits when you least expect it. Like a broken arm , a ligament tear , hernia , which are the least intensive of all. You will have to lose time & money in getting back to you usual life.
So what is the money one will need at retirement ? Here is a simple illustration for a small start of Rs.5000 a month invested at a 12 % for 10 years and 20 years.
The corpus available after 10 years would be Rs 11,50,193
The corpus available after 20 years would be Rs 49,46,276
This is a sample for a one person investment , if you consider a family of 3 or 4 , the amount gets multiplied and so on.
Why not ?
What all could you otherwise do with a fresh pay cheque. A new iphone ? a five star meal ? a new pair of shoes , new jacket ? designer handbag, sale at lifestyle ? a new music player and the list in pretty endless. It still never goes out of style to have a good head on one’s shoulders.
Content Writer- Dilzer Consultants Pvt Ltd