Many people enjoy a range of benefits as part of their employment contract, including private health insurance; however, when people retire they are finding it difficult to afford the cost of private medical insurance.

Companies receive large discounts on insurance policies because of group discounts and doing their own paperwork; larger companies have also effectively taken on the role of insurance providers themselves and it is estimated that these companies put aside an average of 2 million pounds per year to cover insurance for employees with excess, if needed.

Some employers are able to negotiate a good deal for their employees when they retire, but for many, the cost of insurance increases sharply when they retire. As a result of the increased cost of a premium, many people are struggling to afford a medical insurance policy.