Category: Retirement Planning

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.




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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
Glaucoma 38000 82039                           1,77,016
Master Health Chk up 12700 Rs. 27,418.35                               59,194
  142640 Rs. 3,05,789.99                           6,60,076


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.

Sneha Ramamurthy

Content Writer- Dilzer Consultants Pvt Ltd