The Health Spending Observatory intends to provide regular analysis on the dynamics of health spending in Portugal. This includes the analysis of the State Budget, financial arrears, and financing sources of the health system, among others.
This publication analyses the economic challenges posed by population ageing, particularly regarding the management of retirement pensions and private savings for retirement. Long-term savings are crucial for individuals to protect themselves against the risks that increased longevity brings, such as the need to cover unexpected out-of-pocket health expenditures resulting from costly acute episodes or ongoing health expenditures associated with the worsening of chronic diseases. In Portugal, however, the wealth of older individuals is mainly tied up in illiquid assets like housing, which limits their ability to meet unexpected health expenditures. Adults aged 50 and over in Portugal exhibit a high aversion to financial risk and a very short-term savings planning horizon, partly due to low financial literacy. This short report highlights the urgent need for better financial planning and literacy to help individuals manage the risks posed by increased longevity and secure their financial future in retirement.
š You can now download the report in Portuguese here: https://shorturl.at/ARJx4
Author of the study: Pedro Pita Barros and Carolina Borges da Cunha Santos.
This report is part of the Social Equity Initiative , a partnership between FundaciĆ³n ”la Caixa”, Banco BPI, and Nova School of Business and Economics.