Healthcare Consulting
Jillian Larkan Head – Healthcare Consulting Deferred medical scheme contribution increases – September 2022 _______________________________________________________ Premium deferrals are likely to now result in hefty January 2023 increases Medical schemes typically increase their contributions in January each year. The reduction in claims experienced during the COVID-19 pandemic, alongside a desire to maintain affordability for members in a low-inflation environment, saw many schemes defer their 2022 increases, with the biggest open medical scheme – Discovery – originally deferring its increase from January to May 2022, and then again until October. While the January 2023 increases have not yet been announced, Discovery have confirmed a 7.9% increase in October 2022. Various other schemes increased their contributions earlier in the year, although many were also deferred beyond January. The October 2022 increases will almost certainly be followed by scheduled... Read More
Wealth Management
Jenny Williams Senior Servicing Consultant _______________________________________________________________________________________________________ Compulsory investments Part two in our series on de-mystifying some industry jargon and technical language Last quarter we explained how discretionary investments are used in the construction of a financial plan. Industry lingo for investments that are approved by government with tax deductibility specifically for retirement savings, is ‘compulsory’ investments. Why are these compulsory investments? A maximum of 27.5% of taxable income, limited to a maximum investment of R350 000 per annum of taxable income, is allowed into compulsory retirement products. Compulsory investments have a compulsory element to them. To encourage citizens to save for their retirement, and not become a burden on the state in their old age, Government provides tax deductions against taxable income on approved registered retirement products which can be pension funds, provident fund and/or retirement annuities... Read More
