Long-Term Care
Frail Care Cost Calculator
Long-term and frail care is one of the biggest unplanned expenses in retirement. Whether you are planning for yourself or a loved one, understanding the true cost - and starting to save early - gives you control over the quality of care when it matters most.
Who is this for?
Current age
Default: 75
SA average: 3-7 years
20 years until care is needed - giving you time to save and invest.
Care type and estimated cost
SA frail care costs range from R 5 000/month (subsidised) to R 60 000+/month (premium private). Choose the level most relevant to your situation.
Medication, medical aid gap, incontinence supplies, transport, assistive devices. Default: R 3 000
Current monthly cost (today's money)
R 28 000/month
This is your anchor figure - all projected costs are expressed relative to this
Funding and growth assumptions
Healthcare inflation in SA historically runs 3-5% above CPI. The gap between growth and inflation is what determines how hard your savings actually work.
SA medical inflation approx. 8-10% p.a.
Balanced SA portfolio approx. 9% p.a.
Real return (growth minus healthcare inflation)
9% - 8% = +1.0% real return
Thin margin - your savings are just keeping pace. Small changes in assumptions matter a lot.
Grows to R 0 by care start
Accumulates to R 0 by care start
Long-term care insurance or similar in place?
e.g. frail care rider, long-term care policy, gap cover benefit
Today's monthly cost
R 28 000/mo
Your anchor figure - all projections relate to this
Monthly cost when care begins (in 20 yrs)
R 130 507/mo
R 49 187/mo in today's money
Total cash outflow over 5 years
R 9 187 576
R 3 124 726 in today's money
Nest egg needed at care start
R 7 688 043
Lump sum needed when care begins to fund the full period
What your savings will grow to by care start
Funding shortfall
-R 7 688 043
Additional funding of R 7 688 043 is needed to cover the projected care cost.
Additional monthly savings needed
R 12 034
per month, invested at 9% p.a. over 20 years until care begins
How sensitive is this to assumptions?
Small changes in inflation or returns make a large difference over long time horizons. Here are three scenarios.
Optimistic
Inflation 7%, Growth 10%
R 8 571
per month
Base case
Inflation 8%, Growth 9%
R 12 034
per month
Conservative
Inflation 9%, Growth 8%
R 16 857
per month
Plan for this one
Year-by-year care cost projection
Costs during the care period at 8% p.a. healthcare inflation. The "today's money" column uses 5% general CPI to give you a relatable anchor.
| Year | Monthly (inflated) | Monthly (today's money) | Annual | Cumulative |
|---|---|---|---|---|
| Year 1 | R 130 507 | R 49 187 | R 1 566 082 | R 1 566 082 |
| Year 2 | R 140 947 | R 50 592 | R 1 691 368 | R 3 257 450 |
| Year 3 | R 152 223 | R 52 037 | R 1 826 678 | R 5 084 127 |
| Year 4 | R 164 401 | R 53 524 | R 1 972 812 | R 7 056 939 |
| Year 5 | R 177 553 | R 55 054 | R 2 130 637 | R 9 187 576 |
What if care lasts longer?
The average SA frail care stay is 3-7 years, but dementia and other progressive conditions can extend this to 10+ years. If care lasted 8 years instead of 5, total costs would reach R 16 657 827.
To cover 8 years instead of 5, you would need to save an additional R 6 959/month starting now. Consider building this buffer in from the beginning.
Many families share the cost of care between siblings. This calculator shows the full cost - you can divide the savings target as needed.
Check what your policies actually cover for long-term care
Insurance can play a role in funding frail care. Upload your policies to TEN to check what is covered - many policyholders do not know what their gap cover, dread disease, or life policies include or exclude for long-term care.
Upload a policy to TEN →This calculator provides estimates based on current SA frail care cost ranges and assumed inflation and growth rates. Actual costs depend on the facility, level of care required, and individual circumstances. Medical aid coverage for frail care varies - check your policy. Projections over long time horizons are inherently uncertain and should be reviewed regularly. Insure110 does not provide financial advice.
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