Alarm has been expressed in financial circles at the number or people making emergency withdrawals from their superannuation to fund treatment for cancer.
In many cases this is a matter of necessity as the Pharmaceutical Benefits Scheme ( PBS ) does not cover the latest state of the art medications that have become available.
It is estimated that the out of pocket expenses for those forced to fund their own treatment averages $ 13,400 for men and $ 10,600 for women.
Withdrawals from superannuation must follow strict guidelines and usually do not become available until a certain age is reached. However, the Australian Prudential Regulation Authority ( APRA ) has the power to approve early withdrawals in certain circumstances - and trying to beat cancer certainly falls within those guidelines.
But - there are pitfalls. If one member of a marriage contracts cancer and superannuation funds are used to try and beat the disease - win, lose or draw - an affordable old age has gone out the window and the spectre of poverty looms.
And yet who would trade off a comfortable old age against the life of a much loved partner ?
Perhaps this is a situation that the insurance industry should be addressing. There is insurance to cover most calamities so why not a policy to reimburse the cost of drugs not provided under PBS should some catastrophic illness strike the policyholder ?
We take out medical insurance whenever we travel overseas - and that is insurance against something that may not happen. Not everyone will face a life threatening disease - but those that do would be well served by a policy that covers the cost and that would be preferable to having to dip into retirement funds !
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