Undoubtedly, the COVID-19 crisis marked a turning point by exposing the vulnerabilities of health systems and the financial precariousness of people. This global crisis underlined the need for preventive measures in both the health and economic spheres, especially for young people who are the future of any society.
One of the most shocking aspects that emerged during this pandemic was the economic fragility of many in the face of high medical costs. According to Aon’s Global Medical Trends 2023 report, an average increase of 9.2% in global medical costs is anticipated, up from 7.4% a year earlier and marking the highest figure since 2015.
Health, without a doubt, is invaluable. However, their vulnerability is amplified when financial resources are not up to the task of unforeseen medical contingencies. Postponing medical care due to economic limitations not only compromises individual healthbut also overloads health systems as a whole.
As young people build their lives and careers, dealing with significant medical expenses can seem like a distant problem. However, saving and financial planning should be considered from an early stage. Imagine if the pandemic stretched out not just for four years, but for three decades.
Financial preparation involves not only accumulating wealth, but also building a solid financial foundation that acts as a lifeline during adversity. Just as governments have learned to invest in robust health systemsindividuals must internalize the importance of ensuring their financial well-being.
plan for the future
Looking to the future, the connection between financial planning and health care is intertwined with the idea of a dignified retirement. We often underestimate the need to save for the future, especially when retirement seems distant.. However, by 2050, youth will be a rarity and no country will be truly young. In the case of Mexico, it is projected that by 2035, two out of every ten inhabitants will be older adults.
In this context, the need for a savings culture arises as a paradigm shift. Overcoming complacency and seeking instant gratification in favor of a long-term vision is crucial. Just as governments have adapted and strengthened their systems, individuals must learn to navigate economic uncertainties while building a strong financial future.
The role of organizations
The role of organizations is also essential. Companies have understood the importance of safeguarding the financial health, as well as the physical, of their employees. They have implemented programs and resources that promote economic stability and long-term well-being. Likewise, they have established initiatives to promote healthy habits, such as exercise and a balanced diet, that not only improve present quality of life, but also reduce future medical costs.
From my experience, I would like to share strategies to empower people in their financial future:
- Personalized Retirement Planning: Support employees in the creation of personalized retirement plans through workshops and financial advice to establish clear goals and suitable investment strategies.
- Investment Opportunities: Educating yourself on investment options, from retirement funds to investing in the market, will allow you to make informed decisions to grow your assets over time.
- Comprehensive Financial Protection: Offering insurance that covers serious illnesses or disability will reduce the economic impact of unforeseen situations, providing peace of mind to employees and their families.
- Long-Term Planning: Encouraging thinking about long-term goals, such as the education of children and the acquisition of assets, will create stability and confidence in the future.
In a world of uncertainty, reflecting on our preparation is crucial. Financial wellness is not just a goal, but a process that requires time, conscious habits, and careful planning. Organizations that prioritize financial wellness programs are strengthening the resilience of the workforce and building a society more prepared for the challenges ahead.
Editor’s Note: This text belongs to our Opinion section and reflects only the author’s vision, not necessarily the High Level point of view.
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Moses Perez Penaloza Aon Retirement and Financial Wellness Leader for Latin America. Expert in retirement, savings, personal finance and human capital.