Healthcare costs are the single biggest financial shock in retirement — and SHIF alone will not cover them adequately. A Post-Retirement Medical Fund (PRMF) is a dedicated investment fund specifically designed to accumulate the medical funds you will need after leaving active employment. Both employed and self-employed individuals can start building a PRMF through regular contributions while still working. Retirees can also set up a PRMF immediately using a lump sum from retirement funds — specifically the one-third tax-free commuted portion of a pension fund or from other personal savings. The earlier you start, the more your contributions compound. Even modest monthly contributions of KES 2,000–5,000 can build a meaningful medical fund over 10–20 years.