New Saving Product for Retirees Launched
The healthcare fund offers retirees access to over 200 hospitals locally, as well as oversees for high risk and chronic conditions such as Cancer, High Blood Pressure and Diabetes
By Tullah Stephen
Social security financial services firm Enwealth has partnered with APA Insurance and Apollo Asset Management to design a savings product, Anaya Post-Retirement Health Care Fund that will allow workers to pre-fund their health care insurance upon retirement. With contributions as low as Ksh 2,000 per month, members of the Anaya Post-Retirement Health Care Fund will have access to quality healthcare services from over 200 hospitals locally and overseas.
According to studies by the Retirement Benefits Authority (RBA), medical bills are among the key expense that most retirees living on a lower income find challenging upon retirement. This is compounded by the increasing health expenditure, which had grown to KSh73.2 billion by December 2015. The percentage of admissions for people over 65 stood at 34 per cent in 2013 compared to 25 per cent a decade ago.
According to Enwealth CEO, Mr. Simon Wafubwa, the fund is the best option for workers in the market as it attracts better return, assuring growth for a workers’ hard earned income and at the same time cushioning them from a future filled with high medical bills.
The product is designed with levels of flexibility such as bronze, silver, gold, platinum that allows members choice of benefits class based on affordability and desired level of benefits and is open to both cooperates and individuals and anyone above age 18 years.
Apollo Asset Management will provide Fund Management services whereas APA will provide health insurance solutions at retirement.
“Members that participate in this product will enjoy optimal returns which make it cheaper in terms of funding for the target benefit. Upon retirement, the money will be utilized to pay for medical premiums for covers offered by APA Insurance,” says Ashok Shah CEO Apolo Group.
RBA’s Chief Executive Mr Isaac Odundo welcomed Treasury’s amendments to the law during this year’s budget enabling workers to start saving before retirement. He adds that lack of adequate healthcare is known to cause early death for retirees.
The Anaya Post-Retirement Healthcare Fund will cover all diseases including high-risk pre-existing conditions such as cancer, diabetes, High Blood Pressure, amongst others that are not ordinarily covered by conventional health insurance covers for senior citizens.