This is the sixth article in a nine-part series that summarises findings from Just Retirement Insights 2024, a tracking study conducted by retirement income specialist, Just SA.
We previously looked at the possibility of living to the age of 100 – a possibility that should be factored in when planning for retirement.
Unfortunately, living longer increases the risk of dementia, a degenerative disease of the brain that primarily affects the elderly. However, very few people plan for the effect that this disease would have on their ability to make sound financial decisions in late retirement.
According to Just Retirement Insights 2024, only three in 10 respondents have thought extensively about planning for cognitive decline caused by dementia. This remains largely unchanged from previous years’ results and could reflect a sense of unfounded confidence.
Deteriorating mental and physical health in retirement is a double whammy: it can have an impact on how well you can manage your finances in retirement, and it requires ongoing medical care which can come with a hefty price tag. Try to be realistic about the effects of age on all aspects of your health, and plan accordingly.